Moody’s reviews INEOS debt for possible upgrade

31 March 2011 18:17  [Source: ICIS news]

LONDON (ICIS)--Moody’s will put INEOS’s debt under review for a possible upgrade on expected deleveraging and strong cash flow generation in chemicals, the ratings agency said on Thursday.

PetroChina has agreed to take a 50% stake worth $1bn (€710m) in INEOS's European refineries business. INEOS expects to finalise the transaction by May this year.

"The review for upgrade of the ratings reflects the expectation that the proposed transaction will be credit supportive. The carve-out of the refining business should reduce the operating volatility of the rated group, while allowing Ineos to keep the benefits of the integrated model," Moody's said.

"The disposal of the refining assets should also allow Ineos to accelerate deleveraging plans, both through the anticipated reduction in working capital-related borrowings and the prepayment of debt from the disposal proceeds," it added.

($1 = €0.71)

By: Tanzeel Akhtar
+44 208 652 3214

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