Fitch rates Rhodia convertible BB-

Fitch Ratings said it assigned an expected BB- rating to Rhodia SA's proposed issue of up to €595.125 million convertible bonds and affirmed the BB- issuer default rating and BB- senior notes due 2013.

The agency also affirmed and withdrew the BB+ rating assigned to the company's €300 million revolving credit facility, the BB- rating on its senior notes due 2010 and the B rating on its senior subordinated notes due 2011.

The outlook was revised to positive from stable.

Proceeds from the convertibles will be used to refinance the company's senior notes due 2010 and senior subordinated notes due 2011.

The newly proposed financing structure for Rhodia will lead to substantially lowered interest expenses, the agency said, and provided that the company performs broadly in line with its guidance during 2007, including further deleveraging, key credit ratios should be substantially improved toward the end of the year.

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