S&P downgrades American Pacific

Standard & Poor's said it lowered the corporate credit rating on American Pacific Corp. to B from B+, along with the rating on its $110 million senior unsecured notes due 2015 to B from B+ with an unchanged recovery rating of 4.

The outlook is stable.

The lower rating reflects an expectation of soft 2010 operating results due to continued weak volumes in the company's fine chemicals segment and, to a lesser extent, in its specialty segment, S&P said.

The agency said it expects the fine chemicals segment to continue to experience difficulties because new pharmaceuticals approvals have become difficult and as the company manages the mix of new products with existing drugs.

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