Moody’s drops CF Industries debt to Ba3

Moody's Investors Service said it downgraded CF Industries Holdings, Inc.’s senior unsecured ratings to Ba3 from Baa3, withdrew its issuer rating of Baa3, and assigned a Ba2 corporate family rating, a probability of default rating of Ba2-PD and a speculative grade liquidity rating of SGL-1.

Moody’s said the action reflects the company's weakening operating performance due to the fertilizer industry downturn, that is expected to persist into 2018, combined with CF's shift to a more aggressive financial policy that will subordinate the unsecured notes with secured debt.

The agency expects CF's credit metrics to weaken further in 2017 and remain under pressure into 2018 as a result of lower fertilizer prices amid increased market volatility as new nitrogen capacity is added.

The outlook is stable. This action concludes the review that began on Oct. 14.

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