Riyadh-Mubasher: Fitch Ratings has affirmed Saudi Basic Industries Corporation's (SABIC) long-term issuer default rating (IDR) and senior unsecured rating at 'A+' and short-term IDR at 'F1', according to the agency website.

The Outlook on the long-term IDR is Stable. The senior unsecured rating on SABIC Capital's guaranteed bonds has also been affirmed at 'A+', Fitch said.

The ratings reflect SABIC's vertically integrated operations, state-of-the-art, world-scale production facilities and access to competitively priced natural gas feedstock (methane and ethane) in Saudi Arabia (KSA, AA/Negative).

Competitive access to feedstock results in strong free cash flow and best-in-class EBITDA margins, especially in the kingdom which compensates for other under-performing regions.

This mitigates the inherent cyclicality in SABIC's markets (petrochemicals, agri-nutrients, metals) and has limited the cash flow impact of the group's large expansion projects and occasional associated cost overrun or delays in the past.

In Fitch's view, SABIC's standalone business and financial profile already embed any benefits from its state ownership.

The giant petrochemical producer posted net earnings of SAR 5.6 billion for the third quarter ended 30 September, down 9% compared with SAR 6.18 billion in the same period a year ago.