OREANDA-NEWS. On 02 June 2008 was announced, that the international rating agency Standard & Poor's increased the rating of EuroChem from "BB-" to "ВВ", forecast - stable. Increase of the rating reflects stable improvement of operational and financial indicators of the company. The received rating fairly represents the company as a reliable borrower. Only a few companies in Russian have the same rating (including Severstal, Alpha-Bank, Alrosa, Renova etc.) 

In accordance with increase of the rating by one step Standard & Poor's increased the rating of EuroChem according to the Russian scale from "ruAA-" to "ruAA", and the long-term rating of certificates of loan participation issued by the company EuroChem Finance PLC, from "ВВ-" to "ВВ". The forecast of change in the rating is “Stable”.

The forecast “Stable” reflects expectations of Standard & Poor's in relation to the fact that in 2008-2009 EuroChem will follow a perceived financial policy and support high cash flow indicators, in particular, high relation of the operational cash flow before changes in the working capital to the adjusted debt notwithstanding planned significant capital expenses. It reflects the expected favorable nature of cycles, the financial policy of the group and the strategy of shareholders which facilitates maintenance of high indicators of creditworthiness, in particular, reduction of dividends in case of deterioration of characteristics of cycles or growth possibilities affecting the indicator of free operational cash flow.

Further diversification of production, in particular, increase of capacities for production of potassium fertilizers or attraction of a significant equity for this project may lead to increase of the rating with time.