S&P ups OCI, rates bonds BBB-

S&P said it raised OCI NV’s issuer and senior unsecured ratings to BBB- from BB+ and rated the Iowa Finance Authority’s planned bond BBB-. The authority plans to lend the proceeds to the Iowa Fertilizer Co. LLC. OCI will guarantee the bond.

“We anticipate strong market conditions will support solid free operating cash flow (FOCF), leading to a further reduction in adjusted debt. Strong fertilizer demand, tight supply and rising feedstock prices have pushed up prices for nitrogen fertilizers. While the industry is bound to remain cyclical, we anticipate these strong conditions will persist into 2023,” the agency said in a press release.

S&P said it also sees the Russia-Ukraine war tightening supply even more and that OCI is ready to benefit.

The outlook is stable.

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