S&P upgrades K+S

S&P said it upgraded K+S AG’s issuer rating to BB+ from BB.

“Extremely high potash prices from strong demand and supply tightness are pushing K+S' EBITDA to a record high, facilitating minimal leverage at end-2022. We forecast S&P Global Ratings-adjusted debt to EBITDA will strengthen to below 0.5x in 2022. Potash prices have increased materially since June 2021, with a notable acceleration during the first half of 2022. The significant increase in key agricultural commodity prices and the resulting improvement in farm economics has ushered in favorable agricultural fundamentals,” the agency said in a press release.

S&P said it estimates the average selling prices for the issuer’s agriculture products to more than double to above €610 per ton (/t) in 2022 from €298/t in 2021.

The outlook is positive.

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