Fitch lowers Nitrogenmuvek

Fitch Ratings said it downgraded Nitrogenmuvek Zrt's long-term issuer default rating to B- from B.

Fitch also said it downgraded the company's senior unsecured rating to B rating with recovery rating of RR3 from B+ with recovery rating of RR3.

This rating applies to Nitrogenmuvek's €200 million 7% notes due 2025.

The outlook is stable.

The downgrades reflect a protracted weakening in Nitrogenmuvek's financial profile at a time when its strategic expansion into neighboring markets and into domestic trading activities presents a shift toward a business model with higher and more volatile, working capital requirements and a more competitive operating environment, Fitch explained.

The stable outlook reflects a view that the company has sufficient headroom under the B- rating to weather potential challenges and gradually achieve some de-leveraging, the agency said.

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