Fitch rates Cargill notes A

Fitch Ratings said it assigned an A rating to Cargill Inc.'s proposed senior notes due May 14, 2021.

Cargill has an A long-term issuer default rating, A senior notes, A credit facility, F1 short-term issuer default rating and F1 commercial paper.

The outlook is stable.

The company's ratings reflect its competitive position as the largest agricultural company based in the United States and one of the largest privately owned companies in the world, the agency said.

The ratings incorporate Cargill's extensive geographic and product line diversification, which lessens operating earnings volatility associated with the agricultural sector as well as Cargill's liquidity, which is enhanced by readily marketable inventory and substantial cash balances, the agency added.

Balancing out Cargill's credit strengths are the company's exposure to higher risk financial businesses and susceptibility to periodic negative free cash flow when commodity prices rise and working capital increases, Fitch said.

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