Fitch Affirms Mosaic's IDR at 'BBB'; Outlook Stable

CHICAGO--(Business Wire)--
Fitch Ratings has affirmed the investment grade debt ratings of The Mosaic
Company (Mosaic) and its subsidiaries. The ratings acknowledge Mosaic's low
leverage (a debt to latest 12 months EBITDA ratio of 0.3 times [x]), strong cash
position and the company's competitive position within the phosphate and potash
fertilizer industry. The Rating Outlook is Stable.

Fitch has affirmed the following ratings:

The Mosaic Company

--Issuer Default Rating (IDR) at 'BBB';

--Senior secured debt at 'BBB+';

--Senior unsecured notes at 'BBB'.

Mosaic Global Holdings

--IDR at 'BBB';

--Senior unsecured notes and debentures at 'BBB'.

The superheated demand for phosphate and potassium-based fertilizers stepped
backwards in the last calendar quarter of 2008 just preceding falling corn
prices. Similar to other commodities, the prices of phosphate fertilizers
tumbled while warehouse stocks ballooned. Potash fertilizer prices have held up
better so far amid significant industry-wide production cuts, albeit here stocks
have also increased considerably with few large commercial transactions. The
consensus seems to be that farmers have cut back on phosphate and potassium
fertilizer applications as they try to maximize farm economics (which are still
healthy). With the spring planting season all but done, it could be next fall
before inventories return to normalcy and perhaps next spring before demand
awakens.

What this has meant for Mosaic has been a sizeable decrease in cash flow from
operations, both in the third fiscal quarter and Fitch's projections of the soon
to be released fourth fiscal quarter. This situation should be somewhat
self-correcting in quarters to come. Soil nutrients will need replenishment
which will draw down inventories and ultimately support fertilizer prices.
However, Fitch would not expect a return to last fall's price deck absent a
similar run in grain prices which last year was sparked in part by investment
speculation, weather and a weak U.S. dollar. Some additional supply may also
come into the market courtesy of China (a questionable factor), which has
reduced its export taxes on phosphate fertilizers through the end of this year.

Fitch expects that Mosaic's cash flow will look better in the second half of
fiscal 2010, and that its big dollar potash mine expansions will be funded
internally. Mosaic has a substantial cash cushion ($2.5 billion at the end of
last February) to fund any intermediate deficiencies between cash flow from
operations and business reinvestment costs.

Long-term the outlook for corn prices, farm economics and fertilizer demand
looks firm, supported by a growing middle-class and world population and a
continued demand for 'ethanol from corn'. These factors bode well for Mosaic's
prospects, and Fitch sees no immediate threat to the company's ability to
maintain an intended $1.5 billion liquidity buffer. Mosaic's priorities for its
cash are growth, a strong balance sheet, and cash returns to its shareholders,
in that order.

Mosaic is the No. 1 producer of phosphate fertilizers and the No. 2 producer of
potassium based fertilizers in the world. Mosaic earned approximately $4.14
billion in operating EBITDA on $12.17 billion in sales over the latest 12 months
ending Feb. 29, 2009; the company had $1.38 billion in debt at that time.

Fitch's rating definitions and the terms of use of such ratings are available on
the agency's public site, www.fitchratings.com. Published ratings, criteria and
methodologies are available from this site, at all times. Fitch's code of
conduct, confidentiality, conflicts of interest, affiliate firewall, compliance
and other relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings, Chicago
Dennis L. Ruggles, CPA, 312-606-2318
Sean T. Sexton, CFA, 312-368-3130
or
Media Relations:
Cindy Stoller, 212-908-0526, New York
Email: cindy.stoller@fitchratings.com

Copyright Business Wire 2009