S&P assigns A to Archer Daniels notes

S&P said it assigned its A issue-level rating to Archer-Daniels-Midland Co.'s (ADM's) senior unsecured notes due 2026 with final amounts to be determined.

Net proceeds will be used for general corporate purposes, including the repayment of commercial paper borrowings.

S&P said the company enjoys leading market positions in agribusiness, strong product diversification, and modestly improving geographic diversity.

Archer Daniels’ revenues historically have been tied to North American oilseed and corn processing, but the agency said it believes the company will continue to invest in expanding its global footprint and improving its overall business diversification to higher-margin food ingredient offerings, which could help reduce future volatility if the business materially grows.

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