S&P rates Sabic bond A+

Standard & Poor's said it assigned an A+ rating to the proposed bond issue by Sabic Capital I BV to be unconditionally guaranteed by its parent company, Saudi Basic Industries Corp., which has A+ and A-1 ratings, along with a stable view.

The proceeds will be used to refinance or repay debt at Sabic's international subsidiary, Sabic Innovative Plastics Holding BV.

The ratings reflect the Kingdom of Saudi Arabia's 70% ownership and factor in a one-notch uplift for potential extraordinary state support in case of financial distress, S&P said.

The ratings also consider its "strong" business risk profile and "modest" financial risk, the agency said.

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