S&P: Potash on developing watch

Standard & Poor's said it placed its A- long term corporate credit rating on Potash Corp. of Saskatchewan Inc. on CreditWatch with developing implications.

The watch placement reflects the recent unsolicited takeover bid from BHP Billiton Ltd., and the uncertainty of the outcome, as Potash has already rejected the offer and Billiton has stated that it will take the offer directly to the shareholders, S&P said.

The ratings reflect its leading 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 said.

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