DBRS confirms Potash Corp. of Saskatchewan

DBRS said it confirmed the senior unsecured debt rating of Potash Corp. of Saskatchewan Inc. at BBB (high) and its commercial paper rating at R-1 (low).

The trend is stable.

The agency said that as expected, the company has turned in a strong operating performance in up-cycle conditions for the fertilizer industry. Despite an increase in debt leverage, favorable operating earnings and internal cash generation have allowed the company to maintain debt coverage ratios that are compatible with the current ratings.

However, the aggressive debt leverage is a key risk to the current ratings, DBRS said, and limits the company's financial flexibility as the industry is facing a near-term decline.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.