Fitch rates ADM debentures A+

Fitch Ratings said it assigned an A+ rating to Archer Daniels Midland Co.'s proposed offering of $500 million debentures due 2038. ADM has an issuer default rating at A+, senior unsecured notes at A+, convertible notes at A+, credit facility at A+, short-term issuer default rating at F1 and commercial paper at F1.

The outlook is stable.

Proceeds will be used to refinance commercial paper.

Ratings are supported by the company's positions in bio-energy and agricultural processing and merchandising, its competitive advantages and considerable liquidity, the agency said.

Credit concerns include heightened capital expenditures and weak earnings from ethanol processing, Fitch said.

For the 12 months ended Sept. 30, on an unadjusted basis, the issuer's total debt-to-operating EBITDA was 2.6 times.

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