Sabic is world’s largest polymers producer - Standard & Poor’s
Posted: 19 September 2005
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Standard & Poor’s and Fitch Ratings have assigned their corporate credit ratings to Saudi Basic Industries Corporation (SABIC) highlighting SABIC’s worldwide leading market positions in base and commodity petrochemicals, fertilizers and steel products. The outlook of these two rating services companies reflect on SABIC’s leading global position, increasing profitability during the past five years, and its sound financial position in honoring its long and short-term financial obligations.
According to Standard & Poor’s rating, SABIC is the world’s third-largest producer of ethylene, the world’s largest producer of polymers, a leading producer of fertilizer and as the Gulf region’s largest steel producer. SABIC’s rating reflects its leading market position based on its competitive advantage, deriving mainly from its access to natural gas, as well as its favorable geographical location serving the fast-growing Asian markets alongside the established European and North American markets.
SABIC’s profitability is supported by its large, state-of-the-art integrated production plants in Saudi Arabia , which allow significant economies of scale. The adjusted EBITDA margin was 38% in 2004, which is several times higher than major competitors in the US and Europe . Free cash flow generation is even stronger, a privilege that presents a key advantage over international competitors.
Posted by Editor Pipeline Magazine
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