S&P shifts China National Chemical view to stable

S&P said it revised China National Chemical Corp.’s outlook to stable and affirmed the BBB ratings on the issuer and its guaranteed senior unsecured notes.

“We revised our outlook on ChemChina to stable to reflect our expectation of a recovery in earnings in 2021-2022. Despite a tightening of ChemChina’s rating buffer in 2020, we expect a modest rebound in earnings and stable interest expenses, which will likely stabilize its interest coverage in the next two years,” S&P said in a press release.

The agency said it forecasts ChemChina’s EBITDA interest coverage will be 1.6x in 2020-2021 and rise to 1.7x in 2022, compared with the downgrade trigger of 1.5x.

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