Morocco’s OCP is preparing a new issue of U.S. dollar denominated perpetual subordinated notes, as the state owned phosphate and fertilizer producer turns to international markets to help fund its capital expenditure program and general corporate purposes.
S&P Global Ratings assigned the proposed notes a BB issue rating on April 14, two notches below OCP’s BBB- issuer credit rating.
S&P said the lower rating reflects the structure of the securities rather than a deterioration in OCP’s underlying credit profile.
The notes are subordinated to senior debt and allow OCP to defer coupon payments at its discretion without triggering a default, placing them in the hybrid capital category between conventional debt and equity. S&P added that it considers the likelihood of OCP exercising that deferral option to be low.
The agency said the notes may be issued in one or two tranches and will be of benchmark size, but did not specify an amount. It also said the proceeds will not be used to refinance existing domestic hybrid debt.
The proposed sale follows OCP’s upgrade to investment grade in October 2025, after Morocco’s sovereign rating was raised to BBB-/A-3 in late September.
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