Moody's: Agrium notes Baa2

Moody's Investors Service said it assigned Baa2 ratings to Agrium Inc.'s proposed $1 billion issuance of 10-year notes and 30-year debentures. The outlook is stable.

The proceeds will be used for general corporate purposes but mainly for the prefunding of planned capital expenditures.

The agency said the Baa2 ratings reflect Agrium's desire to maintain a substantial amount of financial flexibility to undertake large capital projects and to a lesser degree share repurchases when appropriate.

Agrium's Baa2 rating is supported by the company's diverse business mix, global retail portfolio and solid credit metrics during periods of higher and lower commodity prices, Moody's said. Its pro forma debt-to-EBITDA ratio is 1.9 times.

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