PPC Ltd shares plunged after it said talks with a credit ratings agency will probably lead to a downgrade. The company is preparing a capital raising of ZAR4bn (US$254m) to be used to reduce debt and fund expansion plans, PPC said in a statement. It said shareholders will be advised on the credit agency’s final decision when it has the information.

PPC stock declined 18 per cent, its largest drop on record, to ZAR11.25 on Monday. Company shares are down 27 per cent for the year.

To counter competitive markets and falling prices in its home market, PPC is expanding in Africa, with a target of doubling its size every 10 years. The company is developing projects in countries such as Zimbabwe and Ethiopia, and plans to raise capacity to 12.7Mta in 2018. As a result of expansion projects, PPC’s debt is expected to reach as much as ZAR12bn (US$758m) in the 2017 fiscal year.