Stock Upgrades, Downgrades From TheStreet.com Ratings

Each weekday, TheStreet.com Ratings updates its ratings on the stocks it covers. The proprietary ratings model projects a stock's total return potential over a 12-month period, including both price appreciation and dividends. Buy, hold or sell ratings designate how the Ratings group expects these stocks to perform against a general benchmark of the equities market and interest rates.

While the ratings model is quantitative, it uses both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and company earnings forecasts. Objective elements include volatility of past operating revenue, financial strength and company cash flows.

Huntsman Corporation(HUN Quote) manufactures and markets chemical products. It has been downgraded to a hold from a buy. In line with its strategic focus on high-margin and high-growth businesses, Huntsman recently sold its U.S.-based polymers and base chemicals businesses for about $770 million. This came in addition to its recent exit from the same business in Europe. These divestitures should help the company insulate itself against energy cost fluctuations.

Management has put the proceeds toward reducing its debt burden, which could benefit the bottom line. In July, Huntsman agreed to be acquired by Hexicon Specialty Chemicals for $28 per share. Since the market price has already approached the offer price, the deal, which is expected to be completed by April 2008, leaves very little upside. However, if the merger does not occur by this date, thereafter the cash offer price per share will increase by 8.0% per annum inclusive of any dividend paid. It had been rated a buy since August 2007.