S&P affirms Sabic

Standard & Poor's said it affirmed the A+ long-term and A-1 short-term corporate credit ratings on Saudi Basic Industries Corp.

The outlook is stable.

"The affirmation reflects Sabic's solid balance sheet, strong cost position in the industry and still sound profitability despite a material decline in the fourth quarter of 2008," S&P analyst Tobias Mock said in a statement.

"It also reflects our expectations that the company might benefit from shareholder support in a continuously weak operating environment."

Ratings reflect the company's leading market and cost positions in basic and commodity chemicals, the agency said.

Ratings are constrained by the cyclicality and high capital intensity of Sabic's petrochemicals and steel-production business units and the execution risks associated with investments planned up to 2010, the agency noted.

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