Fitch ugprades Mosaic

Fitch Ratings said it upgraded the Mosaic Co.'s issuer default rating to BB+ from BB-, senior secured revolver and senior secured term loan to BBB- from BB+ and senior unsecured notes to BB+ from BB.

The agency also upgraded Mosaic Global Holdings' issuer default rating to BB+ from BB-, senior unsecured notes to BB+ from BB and senior unsecured notes and debentures that previously did not have subsidiary guarantees to BB+ from BB-.

Finally, the issuer default ratings of Phosphate Acquisition Partners LP and Mosaic Colonsay ULC were upgraded to BB+ from BB-, Phosphate's senior secured notes were upgraded to BBB- from BB- and Mosaic Colonsay's senior secured term loan was lifted to BBB- from BB+.

The outlook is positive.

Mosaic has prepaid $850 million of bank debt in the past six months, and the company reported fiscal first-quarter results that greatly exceeded expectations. The agency said sales of $2 billion and EBITDA of $518 million were both meaningfully better than expectations. Leverage is now at 1.73 times, and Fitch expects it to go below 1.5x in the next one to two quarters as Mosaic continues its planned deleveraging.

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