Celanese : Surviving market turbulence without combustion

We are starting the coverage of Celanese with a Negative credit view in the light of the current difficult market environment for chemical producers. With no significant recovery expected in the short term we expect net leverage to remain high, while we believe that there are still risks of further rating downgrades. On the positive side, Celanese benefits from a global scale and a vertical integration in its acetyls chain business, which together with its low-cost facilities allows it to keep sound EBITDA margins. Celanese has maintained a positive FCF generation despite the significant decreases in EBITDA. This, on top of its good liquidity position and asset disposals, should support future debt refinancings.