Fitch downgrades Uralkali

Fitch Ratings said it downgraded PJSC Uralkali’s long-term issuer default ratings to BB- from BB+.

The foreign-currency senior unsecured rating on Uralkali Finance Ltd.’s notes also was downgraded to BB- from BB+.

The outlook is stable.

The downgrades follow a last-minute increase in the amount of the second share buyback program for 2015, which will lead to higher leverage and underlines increased unpredictability around shareholder actions, Fitch said.

The downgrades also reflect Uralkali’s weakened financial metrics and aggressive shareholder actions, culminating in the departure of a key shareholder, Chengdong Investment Corp., the agency said.

Following the completed $2.06 billion share buyback, Fitch said it now forecasts Uralkali’s adjusted net leverage will be about 3.7x in 2015, an increase from the 3.2x previously expected.

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