S&P rates Sabic bond A+

Standard & Poor's said it assigned an A+ long-term rating to the proposed bond issue by Sabic Capital I BV and guaranteed by Saudi Basic Industries Corp., which has A+ and A-1 ratings with a stable view.

The proceeds will be used to repay certain debt to third parties, which was incurred to extend loans to other Sabic Group companies.

The ratings reflect the company's stand-alone credit profile, S&P said, and Sabic's link with the government, which is very strong. The ratings factor in a one-notch uplift for potential extraordinary state support in case of distress, the agency said.

The ratings are supported primarily by the company's excellent profitability, which stems from its access to competitively priced feed stocks, S&P added.

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