Moody's Investors Service upgraded its outlook for Celanese Corp. Friday, saying that the chemical products maker's debt reduction and improved operating performance make it more stable.
In January, fourth-quarter profits at Celanese jumped 64 percent as higher prices boosted revenue. Nincome nearly doubled for the full year of 2011.
Moody's said Celanese is stronger in part because of its operational, geographical, and product diversity. The company also does a lot of business in developing countries, where many countries are expanding their economies at a rapid clip.
The ratings agency upgraded its outlook on the Dallas company to "Positive" from "Stable." It also affirmed the company's corporate family debt rating as "Ba2," which means it considers the debt to have speculative elements while being subject to substantial credit risk.
Moody's warned that Celanese still has significant exposure to volatility in the prices it pays for petrochemical ingredients.
The company also has sizable "debt-like" liabilities, Moody's said, which include pensions and capitalized operating leases.
However, the company has reduced debt on its balance sheet by almost $500 million over the last two years, Moody's said. Some of that improvement has been offset by increases in pension liabilities and the capitalized operating leases.
On Thursday, shares of Celanese rose 1 cent to close at $45.17. Markets were closed Friday to observe the Good Friday holiday.