S&P ups Potash to stable

Standard & Poor's said it revised the outlook on Potash Corp. of Saskatchewan Inc. to stable from negative and affirmed the A- long-term corporate credit rating on the company.

The outlook revision reflects the view that strong for demand fertilizers will allow the company to generate sufficient discretionary cash flow in 2011, allowing it to reduce debt and bring leverage closer to 1.5 times, the agency said.

The ratings on Potash reflect the 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, however, constrains the ratings.

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