Moody's assigns OCP B3

Moody's Investors Service said it assigned a Baa3 long-term issuer rating and a baa3 baseline credit assessment to OCP SA. The outlook is stable.

OCP's Baa3 long-term issuer rating and its BCA of baa3 consider its position as the largest phosphate-based fertilizer producer in the world by capacity, its low cost of production, the long-term supportive demand trends for fertilizers and moderate leverage through the cycle, supported by prudent financial policies, the agency said.

For the 12 months ending June 30, OCP's Moody's adjusted debt/EBITDA stood at 1.5x and retained cash flow/debt stood at 48.4%. “Under Moody's base case forecast with some softening of fertilizer prices, these metrics are expected to somewhat weaken to 1.6x and 34.4% respectively by year-end 2023,” the agency said in a press release.

“The stable outlook reflects Moody's expectation that the company will maintain adequate credit metrics and liquidity throughout the cycle, including in an environment of falling fertilizer prices. OCP's rating is capped at one notch above the government of Morocco's long-term issuer rating and the stable outlook is also in line with the outlook on Morocco,” Moody’s said.

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