K+S said it was looking forward to getting back into credit ratings agencies' good books after succeeding in raising E689m from its cash call.

More than 99% of the German fertilizer group's 26.4m rights issue shares were taken up by existing investors, with the outstanding 0.58% sold on the Frankfurt stock exchange.

The proceeds will be used primarily to strengthen the group's stained balance sheet, giving it the option to pay down debt needed to finance its $1.7bn acquisition of Morton Salt, which was finalised in October.

"As a result of this capital measure, we assume that we will secure our investment grade rating," the potash group's chief financial officer, Jan Peter Nonnenkamp, said.

Both Standard & Poor's and Moody's, the ratings agencies, had placed K+S on a rating only two grades above junk, with a negative outlook, a signal of potential downgrades.

Shareholder support 

K+S said that both of its major shareholders, Eurochem, the Russian fertilizer group controlled by billionaire Andrei Melnichenko, and German industrial conglomerate BASF had taken up their rights in full, meaning no change to their stakes in the company.

Credit Suisse analysts had suggested that Mr Melnichenko, may have opposed the rights issue.

"We... see it as rather unlikely that Melnichenko would expand his holding further at current share prices," the investment bank said last month.

Eurochem was in October appointed a place on the K+S board, which has been taken by George Cardona, a former head of strategy at HBSC group and UK Treasury adviser.

Falling potash 

The K+S announcement followed a downbeat note from analysts at Sal Oppenheim, who kept a "reduce" rating on the group's shares, noting reports of a continued fall in potash prices.

Potash is selling in Brazil for $400-405 a tonne, according to industry newsletter FMB.

Nonetheless, the shares closed up 1.6% at E42.25 in Frankfurt.