S&P may raise Potash Corp if BHP’s bid succeeds

NEW YORK (BestGrowthStock) – Standard & Poor’s on Thursday said it is likely to raise Potash Corp’s ratings to equalize them with BHP Billiton’s if BHP’s takeover bid for Potash succeeds.

If the takeover does not proceed, Potash Corp’s ratings could be affirmed or downgraded, depending on its prevailing credit profile and business prospects, S&P said in a statement.

BHP said on Wednesday it would go directly to Potash shareholders with its $39 billion offer to buy the company after Potash directors rejected the offer. BHP also arranged a massive bank loan that could help it sweeten its now-hostile bid.

Potash, the world’s largest and lowest cost producer of the fertilizer, is rated A-minus by S&P, the seventh-highest investment grade. BHP is rated two notches higher at A-plus, but S&P said earlier on Thursday that it is likely to be downgraded by one notch if it goes ahead with its bid for Potash.

For now, Potash’s ratings are under review with “developing implications,” meaning they may be raised, lowered or affirmed, S&P said.

(Reporting by Dena Aubin; Editing by Theodore d’Afflisio)

S&P may raise Potash Corp if BHP’s bid succeeds