RusRating assigns credit ratings to OAO FosAgro
The rating is based on a strong position in the global market as a producer of phosphorous-based products, a moderate debt burden, a healthy operating margin, and effective management.
Constraining factors include the scale of the Company’s operations and highly-volatile operating cash flow.
About the Company
OAO FosAgro is a vertically-integrated Russian company controlled by the family of A.G. Guriev; roughly 20 of equity is freely traded. Its business centres on the production and marketing of phosphorous-based products, mainly for export. Priority markets include Brazil, Russia, Europe and India.
The Company’s debt burden is moderate and its operating margin is healthy. Scope for re-financing obligations is judged strong. Most debt is long-term; the associated interest-rate and currency risks are minimal. The balance sheet consists mainly of fixed assets, which is consistent with the nature of the industry. Overall risk sensitivity is moderate. Liquidity is sufficient.
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