S&P affirms Agrium

Standard & Poor's said it affirmed the BBB long-term corporate credit rating on Agrium Inc.

The outlook is stable.

The ratings are based on news that the company plans to acquire Viterra Inc.'s retail stores in Canada and Australia, S&P said, as well as the company's interest in an Alberta nitrogen facility.

The transaction is in line with the company's long-term strategy of expanding its retail business, the agency said.

It further solidifies Agrium's market position in the agricultural products retail business, S&P said.

The ratings also reflect the company's good diversity, competitive cost structure, stable margins in retail and history of good cash flow generation, the agency said.

These strengths are partially offset by the company's participation in the cyclical fertilizer industry and exposure to the fragmented and volatile nitrogen and phosphate markets, S&P said.

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