S&P puts EuroChem on positive watch

S&P said it placed the rating for EuroChem Group on CreditWatch with positive implications.

“The CreditWatch positive reflects our view that EuroChem's proposed eurobond issuance and the subsequent debt refinancing will strengthen the company's liquidity position. EuroChem recently announced plans to issue a Eurobond instrument to partly refinance its short-term debt maturities totaling $1.5 billion in 2020. We assume that EuroChem will use the proceeds to repay the current portion of the long-term debt at its subsidiaries,” said S&P in a press release.

S&P also forecasts EuroChem will generate positive free operating cash flow of more than $315 million from 2020 and its credit metrics will strengthen with FFO to debt exceeding the 20% threshold the agency sees as commensurate with a higher rating.

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