22 November 2011 17:29 [Source: ICIS news]
Correction: In the ICIS story headlined “Moody’s downgrades INEOS credit rating on deteriorating economy " dated 22 November 2011, please read the headline as “…outlook…” instead of "… credit rating …". Also in the first paragraph, please read …outlook… instead of …credit rating… A corrected story follows.
LONDON (ICIS)--Moody’s Investors Service has downgraded Switzerland-headquartered petrochemicals major INEOS’s outlook to “stable” from “positive” as a consequence of the deteriorating economy, the US-based credit watchdog said on Tuesday.
"In particular, we believe that economic deterioration is likely to lead to a softening in demand across INEOS's product portfolio, especially for its olefins and polyolefins Europe and chemicals intermediate divisions", said Moody's vice president Gianmarco Migliavacca.
However, Moody's added that despite the deteriorating economic scenario, INEOS will be able to retain its leading market shares across its product range and will start taking advantage of the recently finalised “carve-out” of its refining division, which will allow the company to focus on its petrochemical core business.
It also said it believes that in a weakening environment, INEOS's management would be able to manage cautiously its capital expenditure and working capital requirements, in the same way as it did in the previous downturn.
This will allow the company to continue to generate positive free cash flow, it added.
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