Dow Chemical's MoU with Saudi Arabian Oil will have no impact on ratings - S&P |
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Published
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Tue, 15 May 2007 07:05
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MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said it does not see any immediate impact on the ratings or outlook of Dow Chemical Co after it signed a memorandum of understanding with Saudi Arabian Oil Co to develop a chemicals and plastics production complex in Saudi Arabia.The ratings agency has ratings of 'A-' and 'A-2' on the chemical maker with a stable outlook.S&P said the project, reported to cost about 22 bln usd, could need a sizable equity investment from Dow Chemical and could therefore consume a significant portion of the company's free cash flow during the next several years.S&P said it expects the cash flow, which was about one bln usd in 2006, after capital spending and dividends, will decline as the petrochemical cycle weakens toward the end of the decade.TFN.newsdesk@thomson.comnpr/manCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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Ahead of the Bell: Dow Chemical 