...Methanex Corp.'s ratings reflect its position as the largest global supplier of methanol, with a global distribution network and 9.4 million metric tons (MT) in capacity; the relatively low cost position of plants created by access to cheap/stranded natural gas feedstocks and gas supply contracts with countercyclical features; and significantly improved operational performance in recent quarters. A sharp recovery in methanol pricing led to a strong rebound in the company's FCF and credit metrics. The rating also takes into consideration the company's single-product focus; risk of gas curtailments at select facilities; the significant operating lease expense associated with maintaining shipping and storage facilities; methanol's linkage to volatile crude and coal pricing; sensitivity to Chinese demand; and the risks of capacity additions from competitors....
