Cytec Industries (CYT) Unsecured Notes Offering Rated 'BBB-' at S&P

Standard & Poor's Ratings Services assigned its 'BBB-' issue-level rating to Woodland Park, N.J.-based Cytec Industries' (NYSE: CYT) proposed $250 million senior unsecured notes due 2025.

Cytec will use the proceeds to redeem all $141.8 million of its notes due in 2015, purchase $82 million of its notes due in 2017, and for general corporate purposes. We do not believe the proposed transaction will significantly alter the company's credit metrics, and our rating and outlook on the company remain unchanged.

Our rating on Cytec reflects the company's strong profitability and good end-market diversity, which is partially offset by its smaller overall market shares than its aerospace competitors, and its relatively narrow scope of operations, with niche capabilities. We continue to expect funds from operations to debt, which was 35% for the 12 months ended Sept. 30, 2014, to remain in the 30%-40% range over the next two years as share repurchases and modestly higher debt largely offset earnings growth stemming from strong commercial aerospace conditions.

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