Fitch lifts Rhodia view to stable

Fitch Ratings said it revised the outlook on Rhodia SA to stable from negative and affirmed the company's long-term issuer default rating and senior unsecured ratings at BB-.

The rating action reflects the continuous sequential recovery in volumes and pricing in Rhodia's polyamide and silcea divisions in the second half of 2009, resulting in strong free cash flow generation, reduced net financial debt and credit metrics exceeding Fitch's initial forecast for 2009, the agency said.

Rhodia's ratings continue to reflect its diversified business profile, relatively moderate financial leverage and comfortable liquidity position, Fitch said. The net debt-to-EBITDA ratio was 2.1 times at the end of 2009.

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