Moody's upgrades Westlake Chemical to Baa3

Moody's Investors Service said it upgraded Westlake Chemical Corp. to Baa3 from Ba1, concluding the review that was undertaken on Aug. 5.

The agency said the upgrade reflects Westlake's continued strong performance, improved profitability, access to advantaged feedstocks, and the likelihood that the company's large cash balance will be sustainable despite a significant increase in capital spending over the next several years.

"The review of Westlake's ratings focused primarily on management's plans for future capital spending and the ability to maintain a sizable cash balance over time," John Rogers, Moody's senior vice president, said in a news release. "The company's cash balance is important as it reduces event risk and can be used to prefund potential larger capital projects that may occur later this decade."

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