UAE – Mubasher: Moody's Ratings has affirmed the ‘Baa3’ long-term issuer rating of UAE-based Chemical industry company Fertiglobe, changing the outlook to positive from stable.
The rating agency ascribed its decision to Abu Dhabi National Oil Company's (ADNOC) acquisition of 50% plus 1 share in Fertiglobe from OCI N.V., the current majority owner, and Fertiglobe's solid credit metrics despite weak fertiliser prices compared to 2022 levels, according to press release.
The rating agency anticipates additional operational and financial synergies between Fertiglobe and ADNOC, solidifying Fertiglobe's strategic importance within ADNOC's portfolio and ensuring support if needed.
Moody's said that Fertiglobe's Baa3 long-term issuer rating acknowledges its robust profitability and cash generation capabilities.
It is noteworthy that Fertiglobe logged net profits surged to $154.40 million in the first quarter (Q1) of 2024 from $188.80 million in Q1-23.
