Moody's: Potash view developing

Moody's Investors Service said it affirmed Potash Corp. of Saskatchewan's Baa1 senior unsecured rating and changed the outlook to developing from stable.

The change follows news that Potash has received a hostile take-over bid from BHP Billiton Ltd. Potash's rating might improve should BHP be successful in acquiring Potash at the bid price, while the outlook might be stabilized should BHP's bid lapse, the agency said. Or Potash's rating might be downgraded should another bidder surface, acquire Potash and increase Potash's leverage, Moody's added.

The developing outlook reflects the uncertainty associated with Potash's ownership and related capital structure and business strategy, the agency said.

© 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.