S&P: Rhodia outlook negative

Standard & Poor's said it revised the outlook on Rhodia SA to negative from stable and affirmed its BB long-term and B short-term corporate credit ratings.

"The outlook revision reflects our concerns that demand for Rhodia's products could be very weak in 2009 at least, notably in the automotive and construction markets, while visibility is very limited at this stage," S&P analyst Lucas Sevenin said in a statement.

The outlook change is also based on negative price developments for carbon credits, which could reduce profits beyond our current expectations for the rating, the agency noted.

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