Fitch rates EuroChem BB-

Fitch Ratings said it assigned OJSC EuroChem Mineral and Chemical Co. an issuer default BB- rating and a short-term B rating.

The outlook is stable.

The ratings reflect EuroChem's leading position in the Russian fertilizer market, conservative financial policy and strong financial profile, Fitch said.

EuroChem's leverage declined to 0.7x in 2005 from 1.6x in 2003 and compares favorably with those of its Russian and international peers, the agency said. The company's cash position also is sound with $82 million of cash on the balance sheet as of September. Fitch said it believes the company's sound credit metrics provide significant headroom for further expansion.

However, the ratings also factor in the prospect of the company's strong financial profile coming under pressure from the expected liberalization of the Russian gas market with a subsequent rise in domestic prices, the agency added.

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