Fitch ups Chimique Tunisien, Phosphates de Gafsa view to positive

Fitch Ratings said it changed Groupe Chimique Tunisien's and Compagnie des phosphates de Gafsa's outlook for their national long-term ratings to positive from stable. Chimique Tunisien's national ratings are confirmed at long-term rating at AA(tun) and short-term rating at F1+(tun). Gafsa's ratings are confirmed at long- term AA-(tun) and short-term F1(tun).

The positive outlook for both companies reflect the positive prospects for world agriculture demand in a context of a significant shortage in world grain and oilseed production and the consequential increase in demand for fertilizers, the agency said.

The ratings also reflect Gafsa's extensive use of an important natural resource essential for life: phosphorous bound up in raw phosphate. The ratings also are based on the companies' strong credit metrics and the sustained world demand for agriculture products. The ratings also factor in the strong support from their sole shareholder, the Tunisian State, by virtue of the strategic importance of the phosphate industry to the Tunisian economy, Fitch said.

The ratings are impacted by the cyclical world agriculture and fertilizer markets depending on soil conditions, cropping patterns, climatic conditions, rainfall, geopolitics and the economic situation, Fitch added.

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