The assessment indicates that the credit quality of the firm’s debt has deteriorated.
The change follows lower than expected pre-tax operating profit reported for the third quarter of $115m, which was $156m below the same period in 2006.
The adjustment was also made due to weaker prospects for the polycarbonate markets and rising material costs that had not be incorporated into the company’s pricing, S&P said in a statement.
S&P expects Sabic Innovative Plastics’ parent company Saudi Basic Industries Corporation (Sabic) will have to offer it financial support in 2008.
You might also like...
Iraq signs deal to develop the Akkas gas field
25 April 2024
Emaar appoints beachfront project contractor
25 April 2024
Acwa Power signs $356m Barka extension
25 April 2024
AD Ports secures Angola port concession agreement
25 April 2024
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.