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Credit Suisse downgrades Sabic stock

Credit Suisse has downgraded Saudi Basic Industries Corp's (Sabic) stock to 'neutral' from 'outperform' citing the company's falling margins mainly due to foreign acquisitions, Reuters has reported. "The steep decline can be explained largely by the capacity additions and acquisitions along with rising naphtha costs which weighed on the previously acquired DSM (Petrochemical) business," analyst Digvijay Singh wrote in a note to clients. Sabic's earnings before interest, taxes, depreciation and amortization (Ebitda) margin dropped to 28.7% in 2009 from 45.6% in 2005.