Fitch revises EuroChem to negative

Fitch Ratings said it revised Swiss-based holding company EuroChem Group AG's and Russia-based JSC MCC EuroChem's outlook to negative from stable and affirmed their long-term issuer default ratings at BB.

The negative outlook was driven by forecast funds from operations (FFO) adjusted net leverage (leverage) peaking at over 3 times and exceeding Fitch's negative rating guidance of 2.5 times over the next two years. This is largely due to the company implementing capex for its potash and ammonia project at a time of low fertiliser prices, which is not fully offset by lower costs.

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