Fitch affirms Sabic

Fitch Ratings said it affirmed Saudi Basic Industries Corp.'s (Sabic) long-term issuer default rating at A+, senior unsecured rating at A+ and short-term issuer default rating at F1.

The outlook is stable.

The senior unsecured rating on Sabic Capital I BV's guaranteed bonds also was affirmed at A+.

The ratings continue to reflect Sabic's strong business profile and moderate leverage, as well as a one-notch uplift for assumed support from its controlling shareholder, the Kingdom of Saudi Arabia, Fitch said.

The ratings are underpinned by its vertically integrated operations, state-of-the-art world scale production facilities and access to low cost natural gas feedstock, the agency said.

This strongly mitigates the inherent cyclicality in Sabic's markets and the cash flow impact of the large expansion projects undertaken by the group, Fitch added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.