S&P cuts Equate Petrochemical

S&P said it downgraded Equate Petrochemical Co. KSCC to BBB from BBB+, citing the pressure downward on petrochemical prices.

“We believe that the Covid-19 pandemic and resulting effect on the global economy, oil prices and petrochemical sector in general would pressure Equate's profitability and leverage over the next few years. The downgrade reflects our view of subdued petrochemical prices, mainly for EG (80% of sales), for the next 12-to-18 months,” said S&P in a press release.

The outlook is negative.

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