S&P affirms Saudi Basic

Standard & Poor's said it affirmed its A+ long-term and A-1 short-term foreign currency corporate credit ratings on Saudi Basic Industries Corp. and its BBB/A-2 corporate credit ratings on its subsidiary SABIC Europe BV.

This follows the company's announcement that it will acquire the plastics business of General Electric Co. (AAA/stable/A-1+) for a total consideration of $11.6 billion, the agency noted.

The outlook is stable.

S&P said that the ratings on Saudi Basic reflect its leading market positions in basic and commodity chemicals as the world's third-largest producer of ethylene and polymers and the Gulf region's largest steel producer with a current capacity in excess of five million metric tons.

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