03 August 2012 07:50 [Source: ICIS news]
SINGAPORE (ICIS)--Moody's Investors Service said on Friday it has downgraded its rating for ?xml:namespace>
The ratings firm in a statement changed the outlook on Chandra Asri’s B2 corporate rating and senior secured bond rating to negative from stable to reflect the “protracted decline in the company’s profit margins following a decline in its naphtha-ethylene spread”.
"Such pressure on its profit margins and weak credit metrics is likely to affect the company for the next 12 months," said Vikas Halan, a Moody's vice president and senior analyst.
In the last twelve months ending in June this year, Chandra Asri generated earnings before interest, tax, depreciation and amortisation (EBITDA) of $22m (€18m), with an EBITDA margin just around 1%, according to Moody’s.
In addition, the firm has increased its borrowings to fund its expansion into the butadiene segment, Moody’s added.
Chandra Asri is building a new 100,000 tonne/year butadiene (BD) plant at Cilegon in
Its integrated petrochemical complex at Cilegon in Banten province,
($1 = €0.82)
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