Moody's cuts Rhodia outlook to stable

Moody's Investors Services has changed the outlook on all outstanding ratings of Rhodia SA to stable from positive.

The revision of the outlook to stable from positive was prompted by Rhodia's revised guidance for its 2008 outlook communicated to the market on Dec. 8, the agency said.

The accelerated demand decline in several of the group's end markets has led Rhodia to lower its recurring EBITDA guidance for the full year 2008 to 10% below previous year, Moody's said, noting that it expects full year debt and cash flow metrics to deteriorate from fiscal year 2007 levels and to be below the levels factored in its expectation for a rating upgrade back in Nov. 2007 when the agency changed its outlook to positive on all ratings of Rhodia.

The agency said it will continue to closely monitor the operating developments of the group in the short-term and will review more precisely the impact on debt and cash flow metrics of the recent slowdown in demand when Rhodia will publish its full year result for the fiscal year ending Dec. 31.

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