Fitch upgrades OCI

Fitch Ratings said it upgraded OCI NV's long-term issuer default rating and senior secured rating to BB+ from BB. The recovery rating is RR4.

“The upgrade follows OCI's application of strong cash flow generation and proceeds from minority stakes to gross debt reduction, which we forecast at $3.2 billion at end-2021 and $2.7 billion at end-2022. This supports our expectations that OCI will sustainably reduce funds from operations (FFO) net leverage to below 3.5x, despite resumption of dividends and a gradual normalization of fertilizer and methanol prices by 2023 under Fitch's price deck,” Fitch said in a press release.

The agency said it sees OCI cutting its net leverage in 2021 to under 2x from 5.6x in 2020.

The outlook is stable.

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