Fitch affirms Tunisian phosphate companies

Fitch Ratings said it affirmed the national long-term ratings of Compagnie des Phosphates de Gafsa and Groupe Chimique Tunisien at AA(tun) and their short-term ratings at F1+(tun).

The outlook is stable.

The agency said the affirmations reflect the Tunisian phosphate industry's strong operational ties to the government and state support due to the strategic importance of the phosphate industry to the country.

CGT's ratings reflect its leading market position in the global trade in phosphate-based fertilizers and the Tunisian phosphate industry's high level of integration as CPG supplies GCT with raw phosphates, Fitch said. The ratings take into consideration CPG's and GCT's strong performance in 2008, driven by higher-than-expected phosphate prices.

The companies' ratings remain constrained by the lack of diversification and the cyclicality of the global agriculture market, the agency said, and factor in exposure to global commodity prices and the dollar/Tunisian dinar exchange rate.

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