Moody's upgrades OCI

Moody's Investors Service said it upgraded OCI NV's corporate family rating and probability of default rating to Ba1 and Ba1-PD from Ba2 and Ba2-PD, respectively. Concurrently Moody's upgraded the instrument rating of OCI's backed senior secured notes to Ba1 from Ba3.

“The upgrade of OCI's rating to Ba1 reflects the significant gross debt reduction during 2021 and Moody's expectation that the company, on the back of expected strong cash generation, will further reduce gross debt in 2022. Lower gross debt enables OCI to maintain credit metrics commensurate with a Ba1 rating through cycles of the volatile fertilizer and methanol markets,” Moody’s said in a press release.

“The upgrade of the backed senior secured notes by two notches, aligning it with the level of the CFR, reflects Moody's view that a material difference between expected loss rates in an event of default for debt issued at the Fertiglobe levels and at the OCI level is not sufficiently likely to warrant notching at this time,” the agency added.

The outlook remains stable.

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