Fitch affirms Chimique Tunisien, Phosphates de Gafsa

Fitch Ratings said it affirmed Groupe Chimique Tunisien's national long-term rating at AA(tun) and its national short-term rating at F1+(tun).

The agency also affirmed Compagnie des Phosphates de Gafsa's national long-term rating at AA-(tun) and its national short-term rating at F1(tun).

The outlook remains stable.

The companies' ratings reflect their sound market position within the highly integrated Tunisian phosphate industry, the high and sustainable global demand for phosphate fertilizer, their robust financial status and the considerable support they enjoy from the Tunisian State, their sole shareholder, Fitch said.

The ratings are, however, affected by the cyclical nature of the world phosphate fertilizer market, the increased price volatility in the raw material used to process raw phosphate (sulfur and ammonia oil derivatives) and the considerable sensitivity of revenues at these companies to factors beyond their control such as world prices for fertilizer and raw phosphates or the Tunisian dinar/ dollar exchange rate, the agency said.

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