Moody’s assigns Baa2 to Agrium debt

Moody's Investors Service said it assigned Baa2 ratings to Agrium Inc.'s proposed 30-year C$400 million senior unsecured debenture and senior secured shelf filing, from which the debenture is being issued.

The company said the offering might grow modestly.

Proceeds will be used to repay short-term debt, which has largely built up due to capital projects currently in process and for general corporate purposes. As part of the financing, Agrium amended its existing indenture, modified the event default and acceleration clause.

The outlook is stable.

"Agrium's is taking advantage of low rates to free up the revolver and make room for future use of short term facilities for working capital and completion of its current capital projects," Moody’s analyst Lori Harris said in a news release. "Additionally, the modification of cross-default and cross-acceleration language in the indenture is more in line with other investment grade issuers."

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