Fitch: OCP view to negative

Fitch Ratings said it revised the outlook on OCP SA to negative from stable.

OCP's long-term issuer default rating and senior unsecured ratings also were affirmed at BBB-.

The outlook revision reflects the likelihood that the phosphate fertilizer market will remain oversupplied in 2017 through 2018 and maintain pressure on prices, Fitch said.

The agency said it expects this sustained market weakness coupled with OCP's ongoing expansion program to put pressure on operating results and free cash flow over the next two- to three-years, resulting in leverage remaining elevated.

Fitch also said it expects FFO adjusted net leverage to be 4.5x in 2016 and to fall to about 3x from 2017.

OCP owns the largest reserves of phosphate rock in the world and ranks among the most cost-competitive producers in the phosphate sector, the agency noted.

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