Moody's rates SABIC bonds A1

Moody's Investors Service said it assigned a provisional A1 senior unsecured rating to the proposed issue of senior unsecured bonds by SABIC Capital I BV, an indirect wholly owned subsidiary of Saudi Basic Industries Corp.

The bonds will be unconditionally and irrevocably guaranteed by Saudi Basic, the agency said, adding that the outlook is positive.

The proposed bonds are to be issued under a par for par exchange of SABIC Europe's existing €750 million of 4.5% bonds due 2013, Moody's noted, adding that in line with the company's corporate strategy to gradually centralize the funding of the group at the parent level, this exchange offer provides concrete evidence of Saudi Basic's commitment towards its operating subsidiaries and also further reduces the debt complexity of the group.

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