Fitch Ratings Affirms PhosAgro's Investment Grade Credit Rating of BBB-/Stable

Fitch Ratings Affirms PhosAgro's Investment Grade Credit Rating of BBB-/Stable

Moscow - PhosAgro ("the Company", Moscow Exchange, LSE: PHOR), one of the world's leading vertically-integrated phosphate-based fertilizer producers, announces that Fitch Ratings has affirmed its Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) at BBB- with a Stable outlook.

In its announcement, Fitch Ratings noted the sustainability of PhosAgro's business and its competitive advantages, including low cash cost of production and its cadmium free phosphate deposits. The agency underscored that PhosAgro generates significant operating cash flow even during periods of market volatility, and it expects that over the next four years PhosAgro's adjusted EBITDA margin will remain above 30%.

Fitch also expects PhosAgro's business sustainability to improve further in the medium term as the company plans to increase the share of high-margin complex fertilizers (NPKs), relative to less profitable DAP/MAP.

PhosAgro CEO Andrey Guryev commented: "We are constantly working to ensure that PhosAgro can remain confident even during periods of significant volatility and uncertainty. Investment grade credit ratings from the three leading rating agencies confirm the effectiveness of our business model, strategy and financial policy."

PhosAgro currently has three investment grade credit ratings:

Fitch: BBB-/Stable

S&P: BBB-/Stable

Moody's: Baa3/Stable

About the Company

PhosAgro is one of the world's leading vertically integrated phosphate-based fertilizer producers in terms of production volumes of phosphate-based fertilizers and high-grade phosphate rock with a P2O5 content of 39% and higher.

The Company is the largest phosphate-based fertilizer producer in Europe (by total combined capacity for DAP/MAP/NP/NPK/NPS), the largest producer of high-grade phosphate rock with a P2O5 content of 39%, a top-three producer of MAP/DAP globally, one of the leading producers of feed phosphates (MCP) in Europe, and the only producer in Russia, and Russia's only producer of nepheline concentrate (according to the RAFP).

PhosAgro's main products include phosphate rock, 50 grades of fertilizers, feed phosphates, ammonia, and sodium tripolyphosphate, which are used by customers in 102 countries spanning all of the world's inhabited continents. The Company's priority markets outside of Russia and the CIS are Latin America, Europe and Asia.

PhosAgro's shares are traded on the Moscow Exchange, and Global Depositary Receipts (GDRs) for shares trade on the London Stock Exchange (under the ticker PHOR). Since 1 June 2016, the Company's GDRs have been included in the MSCI Russia and MSCI Emerging Markets indexes.

More information about PhosAgro can be found on the website: www.phosagro.ru.