CasualtyS&P Places K+S Rating on Watch
Posted on
August 5, 2013 by
Asher Berube
August 5, 2013 (Source:
WSJ) — The credit rating agency Standard & Poor’s has put German fertilizer supplier K+S AG (SDF.XE) on watch, the agency said Monday.
“Russian potash producer Uralkali’s decision to stop exporting through Belarusian Potash Company and increase volumes from next year could mark an industry wide shift toward much higher competition and lower prices,” it said.
K+S has embarked on a large capital expenditure project, the agency noted, while having high production costs in the industry.
S&P said it has placed its ‘BBB+/A-2′ ratings on K+S on Credi*****ch with negative implications. It added it could downgrade the company if, after reassessing its industry outlook and the company’s financial policy and strategy, K+S’ credit metrics weaken against S&P’s forecasts.
The agency said it aims to resolve the Credi*****ch within three months.
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