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Prospect News home > News index > List of issuers A > Headlines for Archer-Daniels-Midland Co. > News item |
Fitch downgrades ADM
Fitch Ratings said it downgraded Archer Daniels Midland Co.'s long-term issuer default rating to A from A+, senior unsecured debentures to A from A+, convertible notes to A from A+ and credit facilities to A from A+.
The agency affirmed the short-term issuer default and commercial paper ratings of F1.
The outlook is stable.
According to Fitch, the downgrade reflects the increasing magnitude of ADM's working capital to finance its inventories during an extended period of soaring agricultural commodity prices.
Ratings are supported by the issuer's leading position in agricultural processing and merchandising, as well as its position as the world leader in bioenergy, Fitch said.
Ratings also consider liquidity, which improves financial flexibility, the agency said.
For the 12 months ended March 31, total adjusted debt-to-operating EBITDA ratio was 1.4 times.
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