S&P assigns A to ADM notes

S&P said it assigned its A issue-level rating to Archer-Daniels-Midland Co.'s senior unsecured notes due 2047.

ADM's business strength is underpinned by its leading market positions in agribusiness, strong product diversification, and modestly improving geographic diversity, S&P said in a news release.

The agency added that the company is exposed to inherent cyclicality in its various businesses (particularly ethanol and biofuel production).

“Therefore, we expect trough-cycle debt-to-EBITDA to remain below 2.5x and leverage levels to be sustained closer to or below 2x through-the-cycle,” S&P said in a news release.

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