S&P rates Methanex Corp.'s notes 'BBB-'
Dec 12 - Standard & Poor's Ratings Services today said it assigned its 'BBB-' rating to Methanex Corp.'s US$300 million notes. "The ratings and outlook on Methanex are unchanged following the company's plans to issue US$300 million in senior unsecured notes," said Standard & Poor's credit analyst Jatinder Mall. "We expect proceeds from the notes to be used for general corporate purposes and to finance a portion of the costs of relocating one of the company's Chile plants to Geismar, La.," Mr. Mall added. The ratings on Methanex reflect what we view as its "satisfactory" business risk profile and "significant" financial risk profile. Although the announced debt issuance will increase the company's adjusted leverage to 3.3x in the near term, we expect Methanex to maintain a debt-to-EBITDA ratio between 2x-3x in the next couple of years. The stable outlook reflects our expectation that the company's initiatives to increase operating capacity, as demonstrated by restarting a second plant in New Zealand in 2012 and finalizing its decision to relocate a plant to Geismar, will somewhat improve its operating diversity and help to generate stable cash flows in the future. RATINGS LIST Methanex Corp. Corporate credit rating BBB-/Stable/-- Rating Assigned US$300 million senior unsecured notes BBB- Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.