Moody’s rates LYB International notes Baa1

Moody's Investors Service said it assigned Baa1 rating to the proposed €500 million of guaranteed senior unsecured notes due 2022 to be issued by LYB International Finance II BV, a wholly owned subsidiary of LyondellBasell Industries NV.

LyondellBasell fully and unconditionally guarantees these notes. The company may upsize the deal to €750 million.

LyondellBasell’s other Baa1 ratings and its commercial paper rating of Prime-2 remain unchanged.

The outlook is stable.

Proceeds from the new notes will be used for general corporate purposes, including repurchases of LyondellBasell's ordinary shares.

"Despite the prospect of reduced profitability in 2017, due to a rise in feedstock prices, LyondellBasell's credit metrics should solidly support the Baa1 rating," Moody’s senior vice president John Rogers said in a news release.

"Capacity additions should continue to increase the company's baseline profitability in 2016."

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