Fitch Ratings has downgraded the rating on the $1.185 billion of Midwestern disaster area revenue bonds issued by the Iowa Finance Authority on behalf of Iowa Fertilizer Company LLC (IFCo) to B-plus from BB-minus.
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The rating outlook remains negative.
The downgrade reflects continuing completion delays and increased costs likely to exhaust available contingency funding.
The negative outlook reflects the potential for delays and cost increases that may exceed current projections. Once operational, the project is exposed to potentially volatile operating margins with rating case coverage near breakeven levels in the early years.
