Current credit ratings

Current credit ratings

Rating agency Rating Outlook
S&P BB- Positive
Moody’s Ba2 Stable
Fitch BB Stable
RAEX ruA+ Positive

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