S&P cuts K+S

S&P said it downgraded the ratings for K+S AG and its debt to B from B+.

“K+S’ lower earnings forecast exacerbates the risk of negative free operating cash flow (FOCF) in 2020. The downgrade reflects K+S’ revised 2020 EBITDA guidance, following weaker-than-expected potash prices, due to delayed signing of benchmark contracts with China in the first quarter of the year, and 50% lower de-icing salt sales due to mild weather in North America in the first quarter of 2020 compared with first quarter of 2019,” S&P said in a press release.

The agency said it now sees adjusted EBITDA of €500 million-€520 million in 2020 and leverage of 9x-9.2x in 2020 versus the previous forecast of 7.7x-7.9x published on March 18.

The outlook is negative.

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