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S&P Global Ratings upgrades EuroChem to ‘BB’ rating with ‘stable’ outlook

  • Strong operating performance main factor in upgrade from ‘BB-‘
  • EuroChem predicted to strengthen credit metrics further with continued positive free cash flows
  • Stable outlook reflects Group’s cash generation ability and strong performance in debt markets

Zug, Switzerland, August 3, 2021 EuroChem Group AG (hereafter “EuroChem” or the “Group”), a leading global fertilizer producer, announces an upgrade in the Group’s rating by S&P Global Ratings to ‘BB’ on improved operating cash flows amid a stronger market. The outlook is ‘stable’.

In its rationale for the upgrade, the agency cited many factors, including: an increase in forecasted revenues on higher potash output with supportive price conditions; sustained demand for fertilizers globally; high and stable predicted EBIDTA growth over the next two years; EuroChem policy to reinvest cash generated to fund capex program; expected positive free operating cash flow; and a proactive approach to debt refinancing.

“The stable outlook reflects our expectation that EuroChem will consistently generate positive FOCF over the next two years, benefitting from supportive fertilizer prices and additional capacity from the completion of its recent investment,” S&P said in its statement.

EuroChem has a strong capex program funded with a mix of long-term project finance and robust cash generation, which has enabled the Group to oversee the kind of sustainable production expansion that has seen it take up a global top-five position in the sector, and prompted several agencies to upgrade the company’s rating in recent years.

The S&P statement singled out EuroChem Northwest 2, a new US$1.4 billion ammonia and urea facility that is scheduled to come on stream in 2024, as an example of the policy in action.

More information on the S&P rating process of EuroChem is available on the website of the agency.


About EuroChem Group AG

EuroChem is a leading global producer of nitrogen, phosphate and potash fertilizers. The Group is vertically integrated with activities spanning mining to fertilizer production, logistics, and distribution. EuroChem launched potash production at its Usolskiy site in 2018 and has since ramped up output to Phase One operational capacity of 2.3 MMT per annum. The Group continues to develop a second greenfield site at VolgaKaliy in Russia. Headquartered in Zug, Switzerland, the Group operates production facilities in Europe, Asia and the CIS, employing more than 27,000 people.

For more information, please visit www.eurochemgroup.com. Any media or analyst enquiries should be directed to the appropriate EuroChem Group contact, as listed below:

INVESTORS

Oxana Kovalenko
Head of Investor Relations
EuroChem Group AG
oxana.kovalenko@eurochemgroup.com

MEDIA

David Nowak
Deputy Head of Communications
EuroChem Group AG
david.nowak@eurochemgroup.com

RUSSIAN MEDIA

Vladimir Torin
Head of Public Relations
MCC EuroChem
vladimir.torin@eurochem.ru

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