Moody's confirms Sibur

Moody's Investors Service said it confirmed the Ba2 corporate family and probability-of-default ratings of Sibur Holding OJSC with a stable outlook.

Ratings were put on review for downgrade in May following the contemplated management buyout of 50% plus one share of the company from its main shareholder Gazprombank (Baa1/stable) for $ 2.3 billion.

In September, the company announced the cancellation of the buyout due to unfavorable market conditions and advised that it does not intend to resume such activity in the foreseeable future, according to the agency.

Based on 2007 and expected 2008 financial results, Sibur is strongly positioned in its rating category, given its high profitability, positive free cash flow and a debt-to-EBITDA ratio comfortably below 1, the agency noted.

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