Aug. 7 at 10:26 PM
Moody’s Ratings changed Eastman Chemical’s outlook to negative from stable while affirming its Baa2 issuer and senior unsecured debt ratings and Prime-2 commercial paper rating. The revision reflects weaker-than-expected 2026 operating cash flow, challenges in sustaining earnings growth and elevated leverage nearing downgrade levels.
Eastman cut its 2026 operating cash-flow forecast to about
$900 million, pressured by higher inventories and receivables. Moody’s expects working-capital releases to remain weaker as the company ramps production after second-quarter maintenance. Weak construction and automotive demand, along with acetate tow destocking, could also limit earnings growth in 2027.
Reported EBITDA is expected to reach about
$1.5 billion in 2026, up from
$1.44 billion in 2025 but below
$1.8 billion in 2024. Debt/EBITDA is projected near 3.5x over the next 12-18 months, with debt around
$4.8 billion at year-end.
$EMN