Moody’s rates Potash notes Baa1

Moody's Investors Service said it assigned a Baa1 rating, with rating placed on review for downgrade, to Potash Corp. of Saskatchewan Inc.'s proposed $500 million offering of 10-year senior unsecured notes.

Proceeds will be used to repay existing debt under the company's commercial paper program or prefund upcoming debt maturities.

Potash's rating are under review pending its proposed merger with Agrium Inc. (Baa2 under review for upgrade).

"Potash is coming to market to extend its debt duration and take advantage of relative low interest rates," Moody’s senior vice president John Rogers said in a news release.

The Baa1 rating reflects Potash’s relatively conservative financial policies as a standalone company and its low-cost position in both potash and nitrogen fertilizers, the agency explained.

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