Fitch rates Israel Chemicals notes BBB-

Fitch Ratings said it assigned an expected BBB- rating to Israel Chemicals Ltd.'s upcoming dollar-denominated senior unsecured notes.

The prospective notes will be mainly used for the repurchase of the existing notes due 2024 through the tender offer, Fitch said, and for general corporate purposes.

The upcoming notes are rated in line with the company's issuer default rating, the agency noted.

Both existing and prospective notes rank equally with Israel Chemicals' other senior unsecured debt, Fitch added.

The agency said it treats the notes as structurally subordinated only to the Israel Chemicals' securitized accounts receivable, the amount of which is less than 2.0x to 2.5x EBITDA and therefore does not create subordination pressure for the noteholders.

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