Moody's: Agrium notes at Baa2

Moody's Investors Service said it assigned Agrium Inc.'s proposed $500 million of debentures due 2041 a Baa2 rating.

Proceeds from the debentures will be used for general corporate purposes, including the repayment of $125 million of 8.25% debentures due Feb. 15, 2011 and a portion of the outstanding borrowings under Agrium's bank facilities used to fund part of the Australian Wheat Board acquisition.

The rating reflects Agrium's diverse business mix and credit metrics, its stable flow of cash, the prospect of strong near term fertilizer supply/demand fundamentals, the prudent growth initiatives, management's willingness not to overpay for acquisition related growth and past history of active reduction of debt after periods of extraordinary growth, Moody's said.

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