Moody’s downgrades Potash Corp. as fertilizer slump lingers

Moody’s Investor Service on Friday downgraded the credit rating of Potash Corp. of Saskatchewan, citing concerns of a longer-than-expected fertilizer slump, ahead of the company’s planned merger with rival Agrium Inc.

Moody’s downgraded Potash’s rating to Baa1 from A3, saying its credit metrics are likely to weaken as a result of lower fertilizer prices and the potential for increased market volatility as new fertilizer capacity comes onstream within two years.