Fitch puts Nitrogenmuvek on watch

Fitch Ratings said it placed Nitrogenmuvek Zrt's long-term issuer default rating of B- and senior unsecured rating of B on rating watch negative.

The negative watch reflects uncertainty on the evolution and sustainability of cash flows and liquidity due to high gas prices, the agency said.

“Sustained high gas prices, combined with a lack of market acceptance for high fertilizer prices over an extended period, would result in material monthly cash consumption, thereby reducing the cash buffer built up by the company over the past two years. We view the current liquidity as sufficient to cover negative free cash flow (FCF) and financial obligations for up to six months of prolonged adverse market conditions,” Fitch said in a press release.

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