S&P keeps Nufarm on negative watch

Standard & Poor's said that its BBB- long-term corporate credit rating on Nufarm Ltd. remains on CreditWatch with negative implications, pending resolution of the possible acquisition of Nufarm by Sinochem.

"The possible lowering of the ratings on Nufarm, in the absence of a takeover by Sinochem, reflects our view that Nufarm's current weak credit metrics are unlikely to recover to levels commensurate with what we consider are appropriate for an investment-grade rating in the short term," said S&P credit analyst Richard Creed in a news release.

"Moreover, we believe Nufarm's business profile has weakened, reflecting the vulnerability of the company's performance over the past two years to a single product - glyphosate, despite the positive benefit of the group's considerable geographic diversity."

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