Fitch affirms Sibur Holding

Fitch Ratings said it affirmed OJSC Sibur Holding's long-term issuer default rating at BB and removed it from rating watch negative. Its short-term issuer default rating is affirmed at B.

The outlook is now stable.

Sibur is well-positioned to face the challenges of an expected cyclical chemicals downturn, which is being exacerbated by the global economic downturn's impact on Russia, Fitch said, while maintaining a conservative financial profile, including adequate liquidity, moderate financial leverage and preservation of its business model.

The ratings reflects its position as the largest vertically integrated petrochemicals producer in Russia in terms of revenues and its leading domestic market positions in most of its products, the agency said.

The ratings are constrained by its ambitious, mainly debt financed capital expenditure program, Fitch said.

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