UPDATE: Credit Suisse Downgrades CF Industries to Neutral

Credit Suisse lowers its rating on CF Industries CF to Neutral from Outperform on the outlook of nitrogen supply. Credit Suisse notes, "We expect CF will enjoy solid earnings and cash flow in 2012 due to strong nitrogen demand fundamentals and falling U.S. natural gas costs, but we are concerned about potential changes to the Ukrainian marginal cost profile and the impact of new Middle Eastern supply. New nitrogen projects in Qatar and Algeria are finally becoming reality with the plants anticipated to start up this month. Looking out into 2013 and 2014, we see significant oversupply in the nitrogen market with over 10 million tonnes of planned new urea capacity, representing 25% of current export supply." CF closed at $177.06 a share yesterday.