S&P lifts OQ Chemicals

S&P said it upgraded OQ Chemicals to B+ from B.

“The upgrade is underpinned by the OQ group's stronger performance, which results in an improved group credit profile. OQ Chemicals is linked to Oman through its parent company OQ, which is wholly owned by the government of Oman. We continue to consider OQ Chemicals a moderately strategic subsidiary and strategic investment of OQ,” S&P said in a press release.

However, “OQ Chemicals needs to address its debt maturities in the coming months. Its €475 million tranche B1 and $500 million tranche B2 senior secured term loans are due in October 2024. Therefore, the financial debt will become short term in October 2023. We understand that management is working on a refinancing plan. We will monitor any refinancing development in the next months. Mitigating our concerns, we note the solid financial profile of its parent OQ, which could ultimately intervene,” the agency noted.

The outlook is negative.

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