CF Industries cut to junk by S&P, as no fertilizer price recovery seen in 2017

• CF Industries' (NYSE:CF) credit rating is downgraded to junk status, cut to BB+ from BBB- with a negative outlook, by S&P, just days after Moody's also lowered its rating for the company.
• S&P expects ongoing depressed pricing in the nitrogen fertilizer sector will weaken CF's credit metrics, adding that it does not anticipate any meaningful pricing recovery in 2017.
• Global nitrogen capacity is seen continuing to climb, keeping pressure on prices into 2017, and a slump in grain futures has added to weakness in fertilizer prices.