Jim Ratcliffe’s chemicals empire suffers debt downgrade

Core Viewpoint - Ineos, owned by billionaire Sir Jim Ratcliffe, has been downgraded to a BB- credit rating by Fitch due to rising debt levels and challenges in the global chemicals market [1][2][4]. Group 1: Credit Rating and Financial Impact - Fitch downgraded Ineos's credit rating for the second time in two years, previously lowering it to BB in January 2024 [2]. - The downgrade is attributed to Ineos's debts increasing by €4 billion (£3.5 billion) due to costs from the Project One ethane cracker development in Antwerp [3]. - A lower credit rating complicates borrowing, leading to higher debt servicing costs, particularly as Ineos faces low demand for chemicals amid a sluggish global economy [3][4]. Group 2: Market Conditions and Company Strategy - The chemicals market is experiencing a significant slowdown, exacerbated by trade tensions and low global economic growth, impacting Ineos's profitability [3][4]. - Ineos is actively working to reduce its debt by divesting parts of its business, including the sale of its Ineos Composites polymers manufacturing business for €1.7 billion earlier this year [5]. - The company plans to close its phenol production facility in Gladbeck, Germany, by 2027 as part of its cost-cutting measures [6]. Group 3: Sir Jim Ratcliffe's Broader Business Interests - Sir Jim Ratcliffe, the second-richest person in Britain, has significant investments beyond Ineos, including a 29% stake in Manchester United and ventures in automotive and sports [6][7]. - His acquisition of a 27.7% stake in Manchester United in February last year cost £1.25 billion, alongside other investments in sports teams totaling hundreds of millions [8].