S&P rates Rhodia notes BB-

Standard & Poor's said it assigned a BB- rating to the proposed €500 million senior notes to be issued by Rhodia SA, along with a recovery rating of 4, indicating an expectation of 30% to 50% recovery in the event of a default.

The ratings on all of Rhodia's other rated debt instruments are unchanged, the agency said.

Recovery prospects are supported by a valuation of the group on a going-concern basis due to its leading market positions in certain product areas, S&P said.

Nonetheless, the agency said it believes that recovery prospects are sensitive to the renewal of the carbon credits scheme in 2013 and the extent to which Rhodia's energy services business continues to contribute material profitability for the group beyond that date.

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