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Moody's downgrades K+S
Moody's Investors Service said it downgraded the corporate family rating of K+S AG to Ba2 from Ba1, along with the probability of default rating to Ba2-PD from Ba1-PD.
The agency also downgraded the rating assigned to the company's €500 million senior unsecured bond due in June 2022 to Ba2 from Ba1.
The outlook was changed to stable from negative.
The downgrades reflect an expectation that the company's debt-to-EBITDA ratio of 5.2x as of 2018 and 4.6x by 2019, which is higher than expected to maintain higher ratings, Moody's said.
The high financial leverage stems from ongoing cash burn that Moody's said it expects to persist into 2019, albeit at lower levels than in previous years, the agency said.
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