...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 low-cost capacity, created by access to cheap/stranded natural gas feedstocks and gas supply contracts with countercyclical features. The ratings also take into account its recent record financial performance, reflecting capacity additions, portfolio high-grading, as well as higher methanol prices; and robust FCF and credit metrics. Offsetting considerations include the company's single-product focus; the potential cash flow risks of capacity expansions at the Geismar 3 facility; the risk of gas curtailments at select facilities; the significant operating lease expense associated with maintaining shipping and storage facilities; and methanol's underlying volatility, which is sensitive to crude and natural gas prices and Chinese demand, particularly at methanol-to-olefins (MTO) facilities....
