Ineos Quattro - comment

Ineos Quattro was downgraded by two notches, reflecting its weaker credit profile relative to Ineos Group on a standalone basis. This is consistent with prior rating actions, where S&P has assessed Quattro as structurally inferior to the group holding company.

The weaker assessment largely stems from Quattro’s concentrated exposure to merchant commodity chemical markets, notably Styrolution, Inovyn, Aromatics, and Acetyls. These businesses have experienced sharp earnings deterioration, volume weakness, margin pressure, and inventory-related losses amid prolonged adverse market conditions.

In addition, as noted in the Ineos Group commentary, S&P views the group’s ability to support subsidiaries such as Quattro as further constrained by elevated leverage at the Ineos Ltd. level. This reduction in perceived parental support has weighed more heavily on Quattro, justifying the deeper downgrade relative to Ineos Group.