Moody's: Asian petrochemicals outlook stable

Moody's Investors Service said the outlook is stable for the Asian petrochemicals sector.

Business risks vary in the industry and depend on each company's individual product portfolio, markets, feedstock and product cycles, Moody's said in a report.

Fluctuating crude oil prices the past year have squeezed margins and lowered some companies' operating cash flow, particularly those facing relatively weak markets or unable to pass cost increases through to consumers, but the agency said regional economic fundamentals are expected to stay strong, supporting demand for petrochemicals products over next 12-18 months.

The report examines the outlook for ratings and the impact of market conditions, expansion plans and liquidity management practices on the sector in Asia, excluding Japan. Moody's rates four petrochemical companies in the region, three of which are investment grade.

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