Moody's may upgrade Mosaic

Moody's Investors Service said it placed the ratings of Mosaic Co. on review for possible upgrade, including its Ba1 corporate family and probability-of-default ratings, Baa2 senior secured bank credit facility and Ba1 senior unsecured bonds. Also on review is the Ba2 senior unsecured bond rating of Mosaic Global Holdings Inc.

The agency said the review reflects both the enhanced strength of Mosaic's cash flow, caused by extremely robust conditions in Mosaic's fertilizer markets, along with management's ability to realize its often stated public goal of materially reducing debt such that they attain investment-grade credit metrics.

Since its formation, Mosaic management has indicated many times its goal of reducing debt and moving toward investment-grade status. Moody's said the company has taken concrete steps toward this goal over the last 24 months, including paying down $1 billion in long-term debt and increasing cash balances to $1.1 billion at the end of February.

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