Fitch: Ingredion notes BBB

Fitch Ratings said it assigned a BBB rating to Ingredion Inc.'s $500 million senior unsecured notes due 2026.

The outlook is stable.

The proceeds will be used to repay outstanding indebtedness under the term loan, revolving credit facility and for general corporate purposes, Fitch said.

The ratings consider Ingredion's earnings stability and significant scale as a global producer of corn-refined, agriculturally based products and ingredients, the agency said, as well as starches for food, beverage, animal nutrition, paper and corrugating and brewing market segments.

During the past several years, Ingredion has increased diversification through its faster growing specialty portfolio, which should enable the company to grow longer-term revenues in the low- to mid-single digits, Fitch said.

The agency said it believes that the pass-through nature of customer contracts and the expectation for stable commodity pricing tied to abundant supplies of key raw materials support operating income stability with modest positive margin benefits, as corn prices remain at historically low levels, the agency said.

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