S&P affirms Agrium

Standard & Poor's said it affirmed its BBB long-term corporate credit and senior unsecured debt ratings on Agrium Inc. in light of the company's proposed acquisition of UAP Holding Corp. (BB-/Watch positive).

S&P said that the company will finance the purchase through a combination of debt and equity.

The outlook is stable.

According to the agency, the ratings reflect Agrium's good diversity, competitive cost structure relative to its North American peers, and intermediate financial policies while the ratings are offset by the company's participation in the cyclical fertilizer industry and exposure to the fragmented and highly volatile nitrogen market.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.