Fitch rates Westlake notes BBB

Fitch Ratings said it assigned a BBB rating to Westlake Chemical Corp.'s $624.8 million issuance of senior notes due 2021 and $433.8 million issuance of senior notes due 2023.

The outlook is stable.

The notes were issued in connection with the exchange offer for the Axiall Corp.’s senior notes, Fitch said

Westlake also has a long-term issuer default rating of BBB, senior unsecured revolving credit facility rating of BBB and senior unsecured notes rating of BBB.

On Aug. 31, Westlake completed the acquisition of Axiall in an all-cash transaction valued at $3.8 billion, leading to about $3 billion in additional debt for Westlake, Fitch explained.

The acquisition provides opportunities for Westlake to maximize integration from ethylene production through polyvinyl chloride (PVC) and add scale to its PVC resin and vinyl-based building products, the agency said.

While the oil price drop has cut into margins, Westlake continues to benefit from low feed stock prices, particularly ethane, Fitch said.

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