Moody’s Investors Service assigns SABIC long term foreign and local currency rating ‘A1’ with a stable outlook
Moody’s Investors Service Limited (Moody’s) has assigned a long term foreign and local currency rating ‘A1’ with a stable outlook to Saudi Basic Industries Corporation (SABIC) highlighting SABIC’s worldwide leading market positions in petrochemicals, fertilizers and steel products.
Moody’s believes that SABIC’s rating reflects the strong global positions it has built over the past three decades in petrochemicals (e.g. ethylene, methanol, MTBE, ethylene glycol, polyolefins) and fertilizers markets. SABIC enjoys a highly competitive cost position reflecting the significant economies of scale afforded by its world-scale vertically integrated facilities, ready access to feedstock, and proximity to strategic end markets.
Moody’s also acknowledges that the acquisition of DSM’s integrated petrochemicals business in 2002, complemented by the recent purchase of Huntsman’s UK-based commodity chemicals activities, has helped enhance the geographic diversity of SABIC’s asset base, though the majority of its production capacity is still located in Saudi Arabia. Notably, SABIC benefits from its proximity to the fast growing Asian markets while it is able to serve its Europe-based customers through its wholly-owned subsidiary SABIC Europe (both with Saudi Arabia originated products and SABIC Europe’s own production).
Moody’s highlights SABIC’s instrumental role in supporting the diversification of Saudi Arabia’s economy and job creation within the country through the development of the industrial sector.
SABIC is amongst the highest rated global chemical companies by Moody’s.