Moody’s downgrades ratings for LyondellBasell

14 November 2008 18:39  [Source: ICIS news]

TORONTO (ICIS news)--Moody’s has downgraded its ratings for Netherlands-based petrochemicals major LyondellBasell due to the company’s high debt levels and limited financial flexibility, the US credit ratings agency said on Friday.

 

The company’s situation was exacerbated by the current cyclical downturn and unusually high volatility in feedstock prices, it said.

 

Moody’s downgraded LyondellBasell’s corporate family rating to B3 from B1.

 

The company’s olefins and polyolefins businesses were hit by declining volumes as a result of a broad de-stocking in anticipation of a slowdown in demand and pending the readjustment in prices that was likely to follow the recent decline in oil prices, Moody’s said.

 

These market trends hurt LyondellBasell’s cash-flow generation, it added.

 

The company’s performance for the first nine months of 2008 was below expectations due to unprecedented volatility in oil prices that reduced profitability in the chemicals and fuels businesses, Moody’s said.

 

At the same time, LyondellBasell’s refining business experienced operational issues, it added.

 

For more on LyondellBasell visit ICIS company intelligence

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By: Stefan Baumgarten
+1 713 525 2653

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