Moody’s assigns Baa2 to Agrium notes

Moody's Investors Service said it assigned Baa2 ratings to Agrium Inc.'s proposed senior unsecured debentures.

The company is proposing $1 billion in two tranches of 10-year and 20-year debentures.

The outlook is stable.

Proceeds will be used to will be used to repay an equivalent amount of short-term debt, which has increased due to capital project expenditures.

"Agrium's is taking advantage of low interest rates and is improving revolver availability for working capital and the completion of capital projects," Moody’s assistant vice president Lori Harris said in a news release.

Moody’s said the Baa2 ratings reflect Agrium's ample liquidity and capital resources as a result of strong demand for crop inputs. Agrium's diverse business mix, including both integrated wholesale operations as well as a large retail presence with 1,350 facilities in the United States, Australia, South America and Canada as well as an extensive logistical network, provides a stable base of cash flow.

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