S&P ups Invista senior unsecured debt to BB-

Standard & Poor's said it revised its outlook on Invista BV to positive from stable and raised its senior unsecured debt rating to BB- from B+. The agency also affirmed the BB corporate credit rating, BBB- senior secured bank loan rating and 1 recovery rating.

The outlook revision reflects the ongoing strength of the company's global fibers and chemical intermediates franchise, successful and significant cost reduction since the 2004 acquisition of the former DuPont Textiles & Interiors business of E.I. DuPont de Nemours & Co. (A/Stable/A-1) and financial policies that could support a slightly higher rating, S&P said.

The one-notch upgrade of the senior unsecured debt reflects the improved ratio of priority liabilities to adjusted total debt, the agency said.

The ratings reflect the issuer's low investment-grade business risk profile and its sizable portion of premium-priced specialty and branded products, S&P said.

The ratings also consider earnings exposed to supply and demand dynamics and to the volatile cost of energy and raw materials, continued longer-term erosion in spandex volume and prices amid tough competition from Asian producers and exposure to cyclical housing markets, S&P said.

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