Standard & Poor's Ratings Services said Friday that it was raising its rating on chemical maker Ashland Inc. and its subsidiary Hercules Inc. as the company works to boost results.
The new rating of "BB+" is one level below investment grade status. The company's previous rating was "BB." Its outlook remains stable.
"The upgrade follows further sequential strengthening of Ashland's financial profile as benefits of the November 2008 Hercules Inc. acquisition and extensive cost reductions are more fully felt," Standard & Poor's credit analyst Cynthia Werneth said in a statement.
Meanwhile, Werneth said some of Ashland's other businesses have performed better than expected, and a rosier economic outlook should help the company continue to deliver "solid operating results during the next two years."
At the end of 2009, Ashland had about $2.9 billion in adjusted debt, S&P said.
Ashland shares climbed 41 cents to $52.24 in trading Friday.
