Current credit ratings
Current credit ratings
Rating agency | Rating | Outlook |
S&P | BB- | Positive |
Moody’s | Ba2 | Stable |
Fitch | BB | Stable |
RAEX | ruA+ | Stable |
Moody’s: Ba2 (Stable outlook)
Strengths
- Strong business profile, underpinned by its large scale of operations
- Diversified product mix, and established positions in the global and regional fertilizer markets
- Sustainable cost competitiveness, which supports relatively high margins, additionally helped by the weakness of the rouble
- Potential for deleveraging
Risks
- Execution risks associated with the ramp-up of its recently launched new potash facilities and their payback in line with the company’s plan
- Exposure to Russia’s macroeconomic, regulatory and operating environment, including the rouble’s volatility, given that the majority of its assets are in Russia
Fitch: BB (Stable outlook)
Strengths
- Ability to access long-term funding for refinancing and investment needs
- Flexibility to scale down or temporarily delay some of the investments
- Russia-based self-sufficient nitrogen and phosphate production assets have moved to the first quartile of the global cash
cost curves following the recent depreciation of the rouble.
Risks
- Higher-than-average systemic risks associated with the Russian
business and jurisdictional environment - Large investment programme
Standard & Poor’s: BB- (positive outlook)
Strengths
- Moderate financial policy and adequate liquidity
- Strong cost position on the back of the weaker Russian ruble and vertical integration
Risks
- Exposure to the cyclical fertilizer markets – prices to remain weak over the next three years
- Large capital expenditures over the next few years that will most likely lead to negative free cash flow in the medium term
- Russian country risk