Platts clarifies interest rates reference upon cessation of LIBOR publication

Platts, part of S&P Global Commodity Insights, wishes to clarify that for its Asian chemical assessments, bids, offers, trades and price indications, credit terms that differ from those specified in the methodology guide may be normalized for the value of the differing credit terms.

The normalization factor in such cases would be based on prevailing tradeable values and relevant reference interest rates for credit terms.

With the London Interbank Offered Rate (LIBOR) having ceased publication after June 30, 2023, the relevant reference interest rates for normalization of credit terms may include Secured Overnight Financing Rate (SOFR) or other relevant reference interest rates.

The Secured Overnight Financing Rate (SOFR) is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities.

Additional details can be found separately at: https://www.newyorkfed.org/markets/reference-rates/sofr

The Asian chemical assessments are published on fixed pages PCA 218, PCA 206, PCA 214, PCA 215, PCA 193, PCA 190, PCA 322 and PCA 337, on Platts Market Center, the Asian Petrochemicalscan, the petrochemical service on the Platts platform and in Platts Market Data will reflect the usance of updated credit normalizations.

Please send any feedback, comments or questions to pricegroup@spglobal.com and petchems@spglobal.com .

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.

Platts will consider all comments received and will make comments not marked as confidential available upon request.