Moody's gives Sibur negative outlook

Moody's Investors Service said it assigned a negative outlook to Sibur Holding, OJSC and confirmed its Ba1 corporate family rating, its Ba1-PD probability of default rating and the Ba1 rating of Sibur Securities Ltd.’s $1 billion notes.

This concludes the review for downgrade, which began on Dec. 23 as part of the review for downgrade of 45 Russian non-financial corporates. The agency said the review was prompted by the severe and rapid deterioration in the operating environment in Russia and the heightened risk of a more prolonged and acute economic downturn than originally expected.

The confirmation of Sibur's rating reflects Moody's view that Sibur's business is sufficiently resilient to the weakening of Russia's economic and financial environment.

At the same time, the negative outlook reflects Sibur's exposure to the deteriorating Russian operating environment and a potential erosion of Sibur's capex flexibility as it progresses with ZapSibNeftekhim investment project implementation, the agency said.

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