Moody's ups Rhodia view to stable

Moody's Investors Service said it changed the outlook on all ratings assigned to Rhodia SA to stable from negative.

The change in the outlook reflects an improvement in the medium-term liquidity position supported by extended maturity profile of the outstanding debt and refinancing and early repayment of facilities maturing in 2005 and 2006 as well as initial improvements in the operating efficiency in some of the main divisions, the agency said.

Moody's noted the ratings continue to reflect the group's high exposure to oil-derived raw material prices, a weak financial profile with debt protection metrics remaining under pressure for the near term and the challenges Moody's foresees for the group to return to positive free cash flow generation over the next 12 months and a lack of track record in maintaining its pricing power in weaker market conditions.

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