S&P cuts Potash to negative

Standard & Poor's said it revised the outlook on Potash Corp. of Saskatchewan Inc. to negative from stable.

The company's other ratings, including its A- long-term corporate credit rating, are unchanged.

The outlook revision reflects news that the company is repurchasing $2 billion in shares, S&P said.

The agency said it expects Potash to fund the share buyback with debt, leading to leverage of 2.5x at yearend 2010.

The ratings reflect a view of the company's solid market position in potash, its diversification in three fertilizers, low leverage and history of strong cash flow generation, the agency said.

Historical volatility in the company's nitrogen and phosphate operations constrains the ratings, S&P added.

© 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.