Moody's upgrades CF Industries

Moody's Investors Service said it upgraded the senior unsecured rating of CF Industries, Inc. to Baa3 from Ba1 and changed the outlook to stable from positive. The agency also withdrew CF Industries Holdings, Inc.'s Ba1 corporate family rating, Ba1-PD probability of default rating and SGL-1 speculative grade liquidity rating.

"The upgrade to investment grade reflects expected reduction in debt to the targeted $3 billion, which will result in investment-grade level credit metrics even in the trough of the cycle," said Anastasija Johnson, a Moody’s vice president and senior credit officer, in a press release.

"The upgrade also reflects expectations of exceptionally strong credit metrics over the next 12-18 months due to higher projected nitrogen fertilizer prices as a result of dislocations in the fertilizer supply and natural gas availability in Europe," Johnson added.

The outlook mirrors a forecast of strong credit metrics, the agency noted.

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