Moody's changes OCI view to stable

Moody's Investors Service said it changed the outlook on OCI NV to stable from negative.

Concurrently Moody's affirmed OCI's Ba2 corporate family rating and the Ba2-PD probability of default rating. The agency also affirmed the Ba3 rating on the backed senior secured notes.

“The stabilization of OCI's rating outlook reflects Moody's expectations that OCI´s EBITDA and cash generation will recover strongly in 2021 and that free cash flow (FCF) generated will be applied to reduce gross debt. This will result in improved credit metrics which are adequate for a Ba2 rating and result in a capital structure better placed to withstand the cyclicality inherent to OCI's end markets,” the agency said in a press release.

Moody's said it forecasts that OCI will generate Moody's adjusted EBITDA in excess of $1.3 billion in 2021 resulting in a Moody's adjusted gross leverage of below 3.5x.

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