Fitch rates OCP notes BBB-

Fitch Ratings said it assigned an expected senior unsecured rating of BBB- to OCP SA’s proposed notes issue.

The rating is in line with OCP’s long-term issuer default rating of BBB-.

The notes are rated at the same level as OCP’s senior unsecured debt rating as they represent direct, unconditional, unsecured and unsubordinated obligations of the company and will rank pari passu will all existing and future senior unsecured and unsubordinated obligations of the issuer, Fitch said.

The proceeds will be used to fund OCP’s capital expenditure program and for general corporate purposes, the agency said.

The ratings continues to reflect the group’s vertical integration, competitive cost position, exceptionally large ore reserves and its leading market positions in phosphoric acid and phosphate rock, Fitch said.

The ratings also capture the progress to date on OCP’s transformational expansion, which should translate in the near- to medium-term into material cost savings, capacity increases and enhanced product diversification and production flexibility, the agency said.

Rating constraints include the group’s exposure to the phosphate fertilizer cycle, Fitch said.

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