S&P affirms Continental Chemical

Standard & Poor's said it affirmed its B+ corporate credit rating on Singapore-based Continental Chemical Holdings Ltd.

The outlook is stable.

The company intends to raise about $200 million from the debt capital or banking market to finance its expansion and to refinance a large proportion of its subsidiaries' debts.

S&P said Continental Capital Holdings' rating is constrained by the following weaknesses: Greenfield and execution risk in rapid expansion; aggressive financial profile; and generic industry risks applicable to the chemicals industry.

These weaknesses are partly offset, S&P said, by the following strengths: the company has a leading market share in the region; the company sells products in geographically diverse markets; the company has geographically diversified operating facilities; and there is strong demand growth in targeted markets.

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