Saudi Basic Industries Corp. (SABIC)’s credit risk is poised for the biggest monthly drop in almost a year as the world’s biggest petrochemicals maker by market value benefits from higher Saudi economic growth expectations.
Five-year credit default swaps for the state-owned company known as Sabic have decreased 10 basis points this month, the most since February, to 102 yesterday, according to data provider CMA. That compares with 116 for Dow Chemical Co., the world’s third-biggest publicly traded chemicals maker.
Saudi Arabia’s economy expanded 5.6 percent this year, the second-fastest pace in almost a decade, according to the median estimate of 16 economists compiled by Bloomberg this month. That’s up from an earlier forecast of 5.1 percent as the world’s top oil exporter pursues more than $500 billion of investments in areas including industry and petrochemicals. The kingdom’s credit risk almost halved this year to 69, the lowest in the Middle East and below similar-rated Japan.
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