S&P rates PhosAgro notes BBB-

S&P said it assigned a BBB- rating to PhosAgro Bond Funding Designated Activity Co.'s proposed senior unsecured notes.

This issuance is for the sole purpose of financing a loan to PhosAgro PJSC.

The loan will be unconditionally and irrevocably guaranteed by Apatit JSC, a subsidiary of PhosAgro, and will rank pari passu with PhosAgro's other unsecured debt, S&P said.

Apatit accounts for more than 80% of PhosAgro's revenues, EBITDA and assets, the agency said.

Apatit holds PhosAgro's mining licenses and owns and operates the key production facilities for phosphate-based and nitrogen-based fertilizers, S&P said.

The proceeds will be used to refinance the loan provided by PhosAgro Bond Funding Designated Activity that was financed through the issuance of $500 million notes in 2013 due in February 2018, the agency said.

Given the refinancing purpose, S&P said it does not expect PhosAgro's leverage ratio to increase after the new issuance from about 2.1x estimated at year-end 2017.

This is also expected to gradually improve in 2018 through 2019, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.