Fitch cuts CF Industries to junk

Fitch Ratings said it downgraded the issuer default ratings of CF Industries Holdings, Inc. and CF Industries, Inc. to BB+ from BBB.

Debt in the amount of $5.6 billion and revolving credit facility commitments of $1.5 billion are affected by this action.

The outlook was revised to stable from negative.

Fitch said the downgrade reflects its view that weakness in the nitrogen fertilizer market is likely to persist into 2017 as a result of market oversupply. This sustained weakness followed by gradual recovery is expected to pressure operating results in the near term and drive elevated leverage through the next several years.

Fitch expects FFO adjusted net leverage above 2.8 times through 2019.

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