Fitch revises CF Industries to negative

Fitch Ratings said it affirmed the issuer default ratings of CF Industries Holdings, Inc. and CF Industries, Inc. at BB+.

At the same time, the agency revised the outlook to negative from stable to reflect a drop in earnings expectations and a risk of higher leverage through the ratings horizon.

Fitch expects operating EBITDA of at least $800 million and $1 billion in 2017 and 2018 down from prior expectations of at least $1 billion in 2017 and $1.3 in 2018.

“As a result of near-term earnings pressure, Fitch believes funds from operations (FFO) adjusted net leverage could to be above 3.5x after 2019. Fitch believes that weakness in the nitrogen fertilizer market is likely to persist into 2018 with a gradual recovery thereafter,” the agency said in a news release.

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