S&P rates Octal notes B+

S&P said it assigned its preliminary B+ long-term issuer credit rating to Oman-based PET sheet and resin producer Octal Holding SAOC. The outlook is stable.

S&P also assigned a preliminary B+ issue rating to Octal’s proposed $300 million senior unsecured notes.

The preliminary rating on Octal reflects the company's unique, patented technology and integrated business model, which provide competitive advantages over rival PET sheet producers, along with a track record of a gradual increase in capacity utilization and successful pass-through of raw material costs to customers, S&P said in a news release.

These strengths are offset by a highly concentrated operating footprint, overall weaker group margins than those of peers, and exposure to risk factors such as anti-dumping tariffs and fluctuations in freight rates due to its geographic distance to end customers, the agency said.

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