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S&P cuts Israel Chemicals outlook to "negative"

Published 2015-11-01, 05:07 a/m
© Reuters.  S&P cuts Israel Chemicals outlook to "negative"
ICL
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ILCO
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JERUSALEM, Nov 1 (Reuters) - Standard & Poor's lowered its
credit outlook for specialty chemicals and fertiliser maker
Israel Chemicals ( ICL ) ICL.TA ICL.N to "negative" from
"stable", citing a likely decline in potash prices next year.
S&P maintained a "BBB" rating on ICL's debt, it said in a
report published on the Tel Aviv Stock Exchange on Sunday.
"The outlook revision reflects ICL's weak operating
performance in 2015 and our concern that, without
countermeasures, soft potash market conditions may cause the
company's profits and key financial metrics to stay below our
benchmarks for the 'BBB' rating in 2016," it said.
It noted the risk of a 10 percent drop in potash prices next
year due to a supply-demand imbalance.
ICL, controlled by conglomerate Israel Corp ILCO.TA , is
one of the three largest suppliers of the crop nutrient potash
to China, India and Europe.

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