Moody’s changes K+S view

Moody's Investors Service said it changed the outlook on all ratings of K+S AG to negative from stable and affirmed the company's Ba1 corporate family rating, Ba1-PD probability of default rating and Ba1 rating assigned to its €500 million senior unsecured bond maturing in June 2022.

The agency said the change of outlook was prompted by the updated guidance provided by management during the recent presentation of its new "Shaping 2030" strategy, which foresees that K+S will not return to positive free cash flow until 2019.

Moody’s said that the inability of the company to reduce debt in the near term will prevent any meaningful balance sheet deleveraging and delay the recovery in financial metrics that is required to underpin its Ba1 rating.

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