Ineos Quattro - comment

Moody’s has downgraded Ineos Quattro (and Ineos Group), maintaining a negative outlook on both entities. At Ineos Quattro, the rating was lowered to B3 from B2. The downgrade reflects the tone of the recent conference call, which we previously summarised as offering no visibility on future demand; lower prices driven by increased competition and dumping (this time from the Far East rather than the US); and high energy costs in Europe that continue to hinder European producers.

With the Company reiterating its weak Q4 guidance, and with Moody’s expecting the recovery at Quattro to take longer than at the wider Ineos Group, the agency has maintained the one-notch differential between Quattro and the Ineos Group.