Moody's lifts Sabic from junk

Moody's Investors Service said it assigned a Baa3 issuer rating to Sabic Innovative Plastics Holding BV.

As a result of the migration of the ratings to investment grade, the agency also said it withdrew the company's Ba1 corporate family and probability of default ratings and loss-given-default assessments.

The agency also said it upgraded the rating of the company's senior unsecured guaranteed notes to Baa3 from Ba2 and senior secured term loans to Baa2 from Baa3.

The outlook is stable.

The upgrades reflect the further strengthening in the company's financial profile that will result from the early redemption of the $975 million senior unsecured notes due to take place in August, Moody's said.

The upgrades also consider expectations that under normalized trading conditions, Sabic will be able to sustain the improvement in operating performance achieved over the past two years with the support of comprehensive cost-cutting measures, the agency said.

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