Itafos Inc V.IFOS

ICL: Phosphate

[JimToronto]

Fitch Ratings - Barcelona - 15 Jun 2023: Fitch Ratings has affirmed ICL Group Ltd.'s Long-Term Issuer Default Rating (IDR) and senior unsecured rating at 'BBB-'. The Outlook on the Long-Term IDR is Stable.

 

“Development in Battery Materials: ICL will build a plant in the US to increase its capacity of acid and specialty phosphate salts used in lithium iron phosphate (LFP) batteries and is expected to benefit from subsidies. It is difficult to quantify at this stage the expected contribution to profitability given that supply and offtake agreements are yet to be signed.

 

Headroom for M&A: Record profit in 2022 and robust performance expected in 2023 will maintain ICL's EBITDA net leverage at a conservative level below the rating's positive sensitivity until 2025. This will provide headroom for acquisitions, even beyond the levels assumed in our rating case, which we expect to be in the specialty fertiliser or phosphate specialties segments.”