Moody's upgrades EuroChem

Moody's Investors Service said it upgraded EuroChem Group AG’s corporate family rating to Ba1 from Ba2 and probability of default rating to Ba1-PD from Ba2-PD. Concurrently, Moody's raised to Ba2 from Ba3 the $700 million of backed senior unsecured notes issued by EuroChem Finance DAC and guaranteed by EuroChem, and Mineral and Chemical Co. EuroChem JSC.

“The upgrade of EuroChem ratings reflects the company's substantially improved operating and financial performance underpinned by favorable fertilizer market conditions and its strengthened business profile, which also enhances the company's sustainability through the market cycles,” Moody’s said in a press release.

“In particular, the successful ramp-up of its 1 million tonnes (MT) ammonia plant in 2020 and one of the two new potash facilities, Usolskiy mine, with 2.3 MT capacity in 2021 increased EuroChem's operating scale and business diversification into high-margin potash products, making it one of the few global producers with capacity in all three types of fertilizers,” the agency added.

The outlook on both entities remains stable.

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