Fitch affirms Israel Chemicals

Fitch Ratings said it affirmed Israel Chemicals Ltd.'s long-term issuer default rating at BBB- with a stable outlook.

The agency also affirmed the senior unsecured rating of the company’s $800 million 4˝% senior unsecured notes due 2024 at BBB-.

Fitch said the rating affirmation reflects Israel Chemicals’ comfortable positioning within the current rating guidelines, as its funds from operations net adjusted leverage should decline to below 3 times in 2018 supported by the planned $1 billion divestment of the fire safety and oil additives business.

Leverage is expected to decline toward 2.5 times over the next three years strengthened by manageable capex, continued cost-saving efforts in its commodity business and by growth in advanced crop nutrition and specialty chemicals, the agency said.

Accordingly, Fitch said Israel Chemicals’ progress in implementing growth and optimization initiatives across its business segments remains of central importance for the pace of deleveraging.

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