Fitch affirms Sabic

Fitch Ratings said it affirmed Saudi Basic Industries Corp.'s A+ long-term issuer default rating and F1 short-term issuer default rating. The agency also affirmed Sabic Europe BV's A long-term issuer default rating, F1 short-term issuer default rating and A senior unsecured rating.

The outlook is stable.

The agency said the ratings for Sabic reflect its strong business position as one of the world's largest petrochemicals companies; its access to competitively-priced natural gas feedstock, which results in industry-leading profitability and cash generation; the relationship with its 70% shareholder, the Kingdom of Saudi Arabia; and Sabic's strategic importance to the country.

The ratings are constrained by the high capital intensity and cyclical nature of the petrochemicals industry and the remaining execution risks of Sabic's sizeable $21 billion investment program, Fitch said.

For 2007, the adjusted net debt-to-EBITDAR ratio was 0.9 times and the total adjusted debt-to-EBITDAR ratio was 1.8 times.

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