INEOS able to address liquidity needs for next 12 months - Moody’s

03 February 2012 16:16  [Source: ICIS news]

LONDON (ICIS)--Switzerland-headquartered petrochemicals major INEOS has the means to address its liquidity needs for the next 12 months though "financial headroom" will tighten in the second half of the year, Moody’s Investors Service said on Friday.

Despite the group's weak fourth-quarter results, Moody’s said that INEOS’s liquidity has remained adequate, with €581m ($764m) of cash on the balance sheet and an availability of €293m under a committed revolving credit facility due in December 2013.

“Moody's believes that the liquidity currently available to INEOS, together with the projected positive operating cash flows, would be sufficient to address the liquidity needs of the company over the next 12 months, which are considered overall modest,” the ratings agency said.

“However, Moody's believes that INEOS could face a reduction of financial headroom in the second half of 2012 under its committed bank facilities due to forthcoming tightening of financial covenant levels, in case the company experiences a deterioration in financial performance in 2012,” it added.

Earnings for INEOS’s chemical business fell in the fourth quarter of 2011 because of delayed cracker restarts and market conditions in China and the EU.

INEOS said that based on unaudited preliminary management information, the company’s fourth-quarter earnings before interest, taxes, depreciation and amortisation (EBITDA) fell to €220m from €223m in the fourth quarter of 2010.

Moody’s analysis came in report in which it assigned a Ba3 rating to INEOS’s new senior secured notes.

($1 = €0.76)


By: Franco Capaldo
+44 (0)20 8652 3214



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