DBRS rates Potash notes BBB(high)

DBRS said it assigned a provisional rating of BBB(high) to up to $1 billion principal amount of long-term notes to be issued by Potash Corp. of Saskatchewan Inc.

The trend is stable.

The proceeds will be used for general corporate purposes, including repurchases of its common shares pursuant to a recently announced $2 billion share repurchase program.

Although DBRS said it believes that Potash has the credit capacity to sustain its share purchase program in addition to its normal operating activities and an ambitious capital expenditure program, the agency views the issuance of the notes as a prudent step in maintaining the company's liquidity.

The notes will be senior unsecured obligations of Potash and will rank equally in right of payment with all of Potash's existing and future senior unsecured indebtedness, DBRS said.

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