S&P pulls EuroChem from positive watch

S&P said it removed EuroChem Group from CreditWatch with positive implications and affirmed the company’s BB- rating.

The agency placed the rating on positive watch on Feb. 27. EuroChem had planned to sell dollar-denominated senior unsecured guaranteed notes but decided not to proceed.

EuroChem did sell ruble-denominated five-year bonds equivalent to about $480 million and attracted up to $230 million of bilateral offers with different maturities to repay a current portion of its long-term debt maturity, S&P said.

The outlook is positive.

“We expect the company to maintain adjusted FFO to debt of about 20% in 2020 and above that in 2021. This is because we anticipate that ramp-up of production to nameplate capacity and the weakened ruble will support EuroChem’s operating performance in 2020-2021, despite a soft price environment for fertilizers,” S&P said in a press release.

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