(ICIS) -- Standard & Poor's (S&P) has raised its long-term corporate credit rating and senior unsecured debt rating for Germany-based potash and salt producer Kali and Salz (K+S) to BBB+ from BBB, the ratings agency said on Thursday. S&P said K+S has posted strong credit metrics since 30 June 2010 and expects them to continue to do so in the second half of 2011 and into 2012.
S&P anticipates that K+S's earnings will remain volatile because it considers them to be highly sensitive to potash prices and volumes, it added.
However, S&P credit analyst Oliver Kroemker gave K+S a stable outlook because it ⌠reflects our view that strong demand for potash and other fertilizers, and the resulting high prices for them, should enable K+S to increase its profitability in 2011.
In August, K+S announced that its adjusted second-quarter earnings from continued operations had risen by 47.6% year on year to EUR 126.8m (USD 178.6m), while its revenues for the second quarter rose by 10.7% to EUR 1.05bn year on year, on the back of strong demand in its fertilizer business.
MRC