S&P affirms EuroChem

S&P said it affirmed its BB- long-term corporate credit rating on Russian- and Switzerland-headquartered agrochemicals producer EuroChem Group AG. The outlook is stable.

The agency also affirmed its BB- long-term corporate credit rating on EuroChem's core Russia-based subsidiary, Mineral and Chemical Co. EuroChem JSC. The outlook is stable.

At the same time, S&P said it affirmed the BB- issue ratings on EuroChem's existing senior unsecured debt, namely:RUB 5 billion and RUB 5 billion local bonds due in July and November 2018, respectively, issued by Mineral and Chemical Co. EuroChem; $750 million of loan participation notes due in 2017, issued by EuroChem Global Investments DAC, with Mineral and Chemical Co. EuroChem acting as a borrower and EuroChem Group AG the guarantor; $500 million senior unsecured notes due in 2020, issued by EuroChem Global Investments and guaranteed by EuroChem Group; and $500 million senior unsecured notes due in 2021, issued by EuroChem Finance DAC and guaranteed by Mineral and Chemical Co. EuroChem and EuroChem Group.

“The affirmation reflects our expectation that EuroChem will sustain its adjusted FFO to debt at 17%-19% in 2017-2018, with the ratio improving to around 20% in 2019. This is despite the company's ongoing investment in two greenfield potash projects, Usolskiy and VolgaKaliy, and a new ammonia production facility in Kingisepp,” S&P said in a news release.

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