Fitch Changes Outlook for SIBUR's BB+ Rating to Positive

Moscow, 9 April 2018. Fitch revised its outlook for SIBUR’s Long-Term Issuer Default Rating (IDR) to Positive from Negative, and the rating itself was affirmed at BB+.

The change in outlook reflects SIBUR's balanced leverage throughout its intensive investment cycle, reduced execution risks on the ZapSibNeftekhim project (70% complete as at the end of 2017 with a comfortable amount of the remaining project capex), and expected strengthening of the Company’s business profile after the project launch. The agency also took into account SIBUR's proven track record of executing large-scale investment projects.

Fitch forecasts that in 2018–2019 SIBUR will maintain its funds from operations (FFO) adjusted net leverage at 2.0–2.5x and go below 2x by 2020, once ZapSibNeftekhim starts generating an operating cash flow.