Fitch gives BB+ to PhosAgro LPNs

Fitch Ratings said it assigned PhosAgro Bond Funding DAC’s proposed issue of loan participation notes (LPNs) an expected senior unsecured rating of BB+(EXP)

The proposed LPNs have major terms and conditions identical to the outstanding $500 million LPNs due 2021 (BB+). Both issues represent a loan from the issuer, Phosagro Bond Funding, to the borrower, PJSC PhosAgro (BB+/positive), pursuant to the terms of a loan agreement. The noteholders will benefit from the irrevocable and unconditional guarantee of JSC Apatit, PhosAgro's major mining and production subsidiary.

The LPNs will be used to refinance PhosAgro's outstanding $500 million LPNs maturing in February 2018. They contain covenants similar to the outstanding notes', including negative pledge, pari passu, cross default, a covenant fall-away clause under investment-grade status and they have no financial covenants.

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