S&P cuts Chevron Phillips Chemical

S&P said it downgraded the ratings for Chevron Phillips Chemical Co. LLC and its debt to BBB+ from A-, citing an anticipated global economic slowdown that it sees hurting the company’s earnings.

“Our previous ratings had considered a slowdown in 2020 for the company due to factors such as new cracker and downstream product capacity coming online in the U.S. Gulf Coast but not to the extent we now consider. We expect 2020 credit metrics will be depressed from 2019 levels and that 2021 will be even lower if the economic conditions persist and if the company continues ahead with generous shareholder distributions and capital expenditures (capex),” said S&P in a press release.

S&P revised the outlook to negative from stable.

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