Moody's: IMC on watch for upgrade

The ratings of IMC Global Inc. (B1 senior implied) and Phosphate Resource Partners (Caa1 senior unsecured) remain on review for possible upgrade.

The review was prompted by the announcement in January 2004 that IMC and Cargill Crop Nutrition, a wholly owned business unit of Cargill Inc. (A2 senior unsecured, stable outlook) had reached an agreement to merge. The combined company, to be called The Mosaic Co., will remain a public entity, owned approximately 66.5% by Cargill and 33.5% by existing IMC shareholders.

While, IMC's (B1 senior implied) existing ratings remain on review for possible upgrade, Moody's expects that the senior implied rating will move up by one level to Ba3. Other debt ratings will also likely move up one or more levels upon completion of the proposed merger in late October. The likely outlook for Mosaic's ratings would be stable.

Moody's said IMC Global Inc.'s B1 guaranteed senior unsecured notes would likely move to Ba3, the B2 senior unsecured notes and debentures would likely move to B1, and the Ba3 existing guaranteed senior secured credit facility would likely move to Ba2 and then would likely be withdrawn as new facilities are put in place. The Caa1 mandatory convertible preferred shares would likely move to B3.

Moody's added that Phosphate Resource Partners LP's Caa1 senior unsecured notes would likely move to Ba3.

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