Moody’s revises Potash to negative

Moody's Investors Service said it affirmed the A3 ratings of the Potash Corp. of Saskatchewan Inc. and changed the outlook to negative from stable.

These actions follow the announcement by K + S AG (Ba1, stable) that Potash submitted a written proposal for the acquisition of all shares subject to a number of preconditions including due diligence, and that K+S is currently assessing its options. While K + S did not disclose the price for each share in Potash’s proposal, several publications have indicated that the offer was over €40 per share. This would value K + S' equity at roughly €7.8 billion (roughly $8.7 billion).

The negative outlook reflects heightened event risk, as well as uncertainty over the funding of such a large transaction.

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