Moody's moves Methanex view to stable

Moody's Investors Service said it affirmed Methanex Corp.'s Ba1 corporate family rating, Ba1-PD probability of default rating and Ba1 senior unsecured notes rating and changed its outlook to stable from negative. The agency also revised the speculative grade liquidity rating to SGL-1 from SGL-2.

"The change in outlook to stable for Methanex reflects the significant improvement in the methanol markets in 2021 that is leading to lower leverage metrics," said Paresh Chari, a Moody's analyst, in a press release. "The outlook change also reflects Methanex's sizable cash position that could allow the company to complete the G3 project in 2023 without incurring any incremental debt."

In explaining Methanex’s very good liquidity, Moody’s noted it had about $764 million of cash on June 30 and full availability under its $300 million revolving credit facility due July 2026. The company also has full availability under a committed $600 million construction bank facility due 2025 to build the G3 plant that can be used for 70% of construction costs.

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