S&P: Union Carbide view positive

Standard & Poor's said it revised the outlook on Union Carbide Corp. to positive from stable following a review of the company's disclosures on asbestos liabilities.

The agency also affirmed the BBB- corporate credit and senior unsecured ratings.

Key to the outlook revision, S&P said, is its view that asbestos liabilities are unlikely to grow to the point where they meaningfully diminish the strength of the parent-subsidiary relationships between Dow Chemical and Union Carbide.

Ratings reflect Union Carbide's strength as a global chemicals and polymers producer, the agency said, as well as its still sizable but manageable exposure to asbestos-related liabilities, moderate financial profile and strong operating and financial relationship with Dow Chemical.

Ratings also reflect the company's strong business profile and expectation that management will maintain an appropriate intermediate financial risk profile across the industry cycle, S&P said.

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