Moody's: Trinseo view negative

Moody's Investors Service said it affirmed the B1 corporate family rating of Trinseo SA and Trinseo Materials Operating SCA.

Moody's also changed the outlook on the companies to negative from stable reflecting continued volatility in financial performance and concerns that it may remain closer to its covenants in 2012 than it would expect for a B1 rated entity.

"Trinseo's financial performance in the fourth quarter of 2011 was much weaker than anticipated due to the sharp decline in commodity prices and weaker volumes, which negatively impacted all businesses except latex," Moody's senior vice president John Rogers said in a news release.

"Volumes and profitability have begun to rebound in the first quarter, but the sharp run-up in butadiene prices in Asia could negatively impact volumes in the rubber and latex business as the year progresses," Rogers added in the release.

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