Moody's shifts Equate view to stable

Moody's Investors Service said it changed the outlook to stable from negative and affirmed the Baa2 long-term issuer rating of Equate Petrochemical Co. KSCC. The agency also affirmed the Baa2 ratings on the outstanding senior unsecured bonds and sukuks.

“The decision to change the outlook to stable from negative reflects an improvement in the price environment for ethylene glycol (EG) and polyethylene (PE) following a trend of declining prices seen from late 2018 to mid-2020. Prices started to recover from the end of last year, and this will result in stronger earnings for Equate and an improvement in credit metrics. Higher oil prices, supply outages and a degree of global economic recovery have been supporting product prices,” Moody’s said in a press release.

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