Moody's lowers some Sabic Innovative loans to Ba2

Moody's Investors Service said it revised the provisional ratings on Sabic Innovative Plastics Holding BV's proposed senior secured term loans and asset-based revolving facility to Ba2 (LGD3, 41%) from Ba1.

The proposed senior unsecured guaranteed notes were affirmed at B1, and the loss-given-default assessment was adjusted to LGD6, 92% from LGD5, 87%. The agency assigned a provisional Ba2 corporate family rating on June 25.

The revision reflects recent changes to the financing package for the acquisition of GE's plastics division resulting in secured debt representing a higher proportion of the overall debt capital structure, according to the agency. Sabic upsized the amount of senior secured credit facilities to $7.7 billion while reducing the amount to be raised under senior notes to $1.5 billion.

The outlook remains stable.

The downgrade of the provisional ratings reflects the impact of the higher mix of the senior secured debt in the new proposed structure, the agency said.

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