S&P ups Chevron Phillips Chemical

S&P said it raised Chevron Phillips Chemical Co. LLC and its issue-level ratings to A- from BBB+.

“We believe CPChem's earnings will continue to recover in 2021, supported by the global economic recovery. Demand for CPChem's products declined sharply in the second quarter of 2020 as the economy was hit by the Covid-19 pandemic and disruptions in its global markets. In the back half of 2020, markets started to bounce back. That continued into the first quarter of 2021, even with the Texas freeze that affected CPChem and the broader chemical industry. As the economic recovery drives higher demand for CPChem products and cost-advantaged feedstocks, S&P Global Ratings expects EBITDA in 2021 to improve well beyond our previous expectations,” the agency said in a press release.

The outlook is stable.

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