Fitch confirms PhosAgro’s business sustainability

Fitch Ratings has affirmed PhosAgro’s long-term default rating in foreign and national currency at “BBB-” with a stable outlook.

Fitch noted PhosAgro’s business sustainability and competitive advantages, including the low cost of manufacturing and its own reserves of cadmium-free phosphate raw materials. The agency emphasized that the company generates a significant operating flow even during periods of market volatility. Fitch Ratings also expects the adjusted EBITDA margin to remain above 30% for the next four years.

The agency predicts PhosAgro’s sustainability to improve in the medium term, as the company plans to increase the share of high-margin complex fertilizers relatively to less-margin monoammonium phosphate and diammonium phosphate.

“We are constantly improving our efficiency to feel confident even during periods of volatility and uncertainty in the market. Investment-grade credit ratings from three leading rating agencies confirm the effectiveness of our business model, strategy and financial policy,” said PhosAgro CEO Andrey Guryev.