21 December 2007 22:31 [Source: ICIS news]
In its earnings statement, SABIC Innovative Plastics reported that rising costs in energy and feedstock as well as weakness in end markets dragged down its operating performance, Moody's said.
Moreover, trading conditions in the company's markets will likely remain challenging in the upcoming months, Moody's said.
In addition, SABIC financed the acquisitions of Innovative Plastics using a highly leveraged funding structure, Moody's said. Such a structure could put more pressure on the credit of SABIC Innovative Plastics, Moody's said.
Nonetheless, the company could benefit from restructuring and other strategies to lower Innovative Plastic's cost structure, Moody's said. The company could also lower inventories and cut capital spending.
SABIC Innovative Plastics was not immediately available for comment on Friday at 4 pm Houston time (2200 GMT).
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections