Moody's confirms Sabic

Moody's Investors Services said it confirmed Sabic Innovative Plastics Holding BV's corporate family rating at Ba2, $1.5 billion senior unsecured notes rating at B1 (LGD6, 91%) and senior secured bank facilities rating at Ba2 (LGD3, 40%).

The outlook is stable.

The action concludes the review for downgrade that began on Dec. 21 following the announcement of the group's third-quarter results ended Sept. 30.

According to the agency, the confirmation reflects commitment demonstrated by Saudi Basic Industries Corp. (A1/positive) to support its 100%-owned subsidiary, which it regards as an integral part of its long-term strategy to diversify away from its core petrochemical activities into more specialty products.

With the polycarbonate sector affected by persistent input cost inflation compounded by a toughening trading environment, Moody's noted it believes Sabic's performance is likely to fall short of initial expectations.

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