Fitch Ratings removes the Negative Rating Watch on Westlake Chemical Corporation (Westlake; NYSE: WLK) following the announcement that it has withdrawn its proposal to acquire all of the outstanding shares of Georgia Gulf Corporation (Georgia Gulf; NYSE:GGC). A list of Westlake's ratings follows at the end of this press release.

Westlake's ethylene and polyethylene operations benefit from low-cost light (natural gas-based) ethane feedstock and tight supply against the backdrop of capacity shutdowns during the recession and the ongoing strengthening of the demand recovery. Westlake has been managing excess supply and cyclical pressure in its vinyls operation since the end of the housing bubble.

The ratings also reflect the company's low financial leverage and robust liquidity.

Westlake's total Debt to LTM EBITDA as of March 31, 2012 was 1.3x and cash on hand was $985 million compared with total debt of $764 million. The company had $384 million available after utilization for letters of credit under its $400 million senior secured revolving credit facility maturing September 2016. The facility has a 1:0:1 minimum fixed charge coverage ratio for successive 30 day periods on which the borrowing availability is less than the greater of 12.5% of commitments and $50 million. The company has no short- or medium-term debt maturities. The next maturity is the company's $250 million 6.625% senior unsecured notes due 2016.

The Outlook is stable.

Fitch affirms Westlake's ratings as indicated:

--Issuer Default Rating (IDR) at 'BBB-';

--Senior secured ABL facility at 'BBB';

--Senior unsecured notes at 'BBB-'.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Corporate Rating Methodology' Aug. 12, 2012;

--'Rating Chemical Companies' May 13, 2010.

Applicable Criteria and Related Research:

Corporate Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=647229

Rating Chemical Companies Sector Credit Factors

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=510626

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