Moody's rates Qatar Fertiliser Aa3

Moody's Investors Service said it assigned Aa3 local- and foreign-currency senior unsecured issuer ratings to Qatar Fertiliser Co.

The outlook is stable.

The agency said the ratings reflect the group's healthy credit fundamentals and solid financial profile, leading position in the global urea market as the world's largest single-site producer, strong operational capabilities, access to cost-advantaged feedstock and some significant credit enhancement derived from its majority ownership by Qatar Petroleum, which is, in turn, 100% owned by the State of Qatar.

On a more cautious note, Moody's noted the lack of diversity characterizing Qatar Fertiliser's business profile compared with larger fertilizers and chemicals groups. With all its manufacturing facilities located within the Mesaieed Industrial City, the group generates 100% of its revenues from two commodity nitrogen-based fertilizer products, urea and ammonia, the respective prices of which are highly correlated and volatile.

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