LyondellBasell Bonds Increase After S&P Lifts Debt Out of Junk

March 27 (Bloomberg) -- The bonds of LyondellBasell Industries NV increased after Standard & Poor’s boosted the largest producer of polypropylene’s unsecured debt out of speculative grade.

LyondellBasell’s $2 billion of 5 percent notes due April 2019 rose 1.13 cents on the dollar to 112.5 cents, to yield 2.74 percent, at 2:46 p.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The company’s $998 million of 6 percent securities due 2021 rose 1.9 cents to 118.4, to yield 3.5 percent at 3:16 p.m., Trace data show.

S&P raised its rating on the Rotterdam-based chemical maker’s unsecured notes to BBB- from BB+, according to a report today, citing “near industry-leading overall adjusted earnings before interest, taxes, depreciation and amortization margins of 13 percent and pretax return on capital of 28 percent in 2012.”

LyondellBasell had $4.4 billion of total debt as of Dec. 31, according to data compiled by Bloomberg. Speculative, or junk, debt is rated below Baa3 by Moody’s Investors Service and less than BBB- at S&P.

To contact the reporter on this story: Richard Bravo in New York at rbravo5@bloomberg.net

To contact the editors responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net