Fitch rates Sabic note A

Fitch Ratings said it assigned an A rating to Sabic Europe BV's €750 million bonds due 2013. The agency also affirmed the A issuer default and F1 short-term ratings of Sabic Europe and of Saudi Arabia-based parent company Saudi Basic Industries Corp. (Sabic).

The outlook is stable.

Proceeds will be used to refinance existing debt, to support Sabic Europe's capital expenditure program and for general corporate purposes.

The agency said Sabic Europe's ratings are strongly reliant on assumed support from Sabic.

The bond constitutes direct, unconditional and senior unsecured obligations of Sabic Europe. Fitch said that while there is no restriction on additional debt, the bond benefits from a negative pledge regarding secured "relevant indebtedness" at the level of the issuer or at any of its material subsidiaries. Such debt can be in the form of or be represented by bonds, notes, debentures, loan stock or other securities, which are or which can be listed or traded on any stock exchange, over-the-counter or other securities markets. In the agency's view, this negative pledge does not extend to bank debt.

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