Fitch affirms Fertiglobe at 'BBB', outlook stable

Logo of Fertiglobe

Fitch Ratings affirmed the Long-Term Issuer Default Rating (IDR) for ADX-listed Fertiglobe, at 'BBB' with a stable outlook.
 
The agency said Fertiglobe’s rating is one notch above the company’s standalone credit profile of 'bbb-', reflecting its moderate strategic importance to parent company Abu Dhabi National Oil Co. (ADNOC) through its wholly owned investment arm XRG.
 
The rating reflects Fertiglobe’s strong profit margins, supported by competitive gas supplies and the strategic location of its assets serving global ammonia and urea markets, in addition to a conservative balance sheet.
 
Fitch expects EBITDA margins for ammonia and urea production to exceed 40% over the next four years, benefiting from long-term gas contracts costing between $3 and $4 per million British thermal units (MMBtu).
 
According to the report, the company’s UAE assets represent about 30% of its production capacity. Despite the closure of the Strait of Hormuz, the company managed to export volumes equivalent to 56% of its Q2 2026 UAE production. 
Fitch assumes these assets will operate at 50% capacity until regional conditions normalize.
 
Fertiglobe holds a 30% stake in the UAE clean ammonia project, which is scheduled for completion in 2027 with an annual production capacity of one million tons. It targets to market 80% of its output to Asia and Europe.
 
Fitch expects sales from the company’s own production to rise from 4.8 million tons in 2026 to 5.5 million tons in 2027, reaching 5.9 million tons by 2030, excluding clean ammonia.
 
As of end-June 2026, Fertiglobe had strong liquidity, with cash balances totaling $1.37 billion and $550 million in available undrawn revolving credit facilities maturing in December 2027. Cash balances include $469 million earmarked for ongoing negotiations on a gas supply contract in Algeria.