Fitch ups NOVA

Fitch Ratings said it upgraded NOVA Chemicals Corp.'s issuer default rating to BB- from B+ and its senior debt ratings to BB- from B+/RR4. The ratings for the senior secured bank credit facility have been affirmed at BB+.

The outlook was revised to positive from stable.

The upgrade is based on NOVA's strong operating performance over the past several quarters and its significantly improved credit profile following its acquisition by International Petroleum Investment Co. (AA/F1+) in 2009, the agency said.

NOVA benefits from robust demand and tight supply in its core Olefins/Polyolefins segment, which mainly produces ethylene and polyethylene, the agency added. The resulting favorable pricing environment coupled with low costs for light, natural gas-based feedstock enable high operating profits and margins.

The positive outlook is based on the expectation that the favorable ethylene and polyethylene industry dynamics in North America will remain in place over the next several quarters, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.