S&P could lower Syngenta

Standard & Poor's said it placed its A+ long-term and A-1 short-term corporate credit ratings on Syngenta AG on CreditWatch with negative implications.

The agency also placed its issue ratings on Syngenta's outstanding debt facilities, including its commercial paper and euro medium-term note programs, revolving credit facility and senior unsecured bonds, on CreditWatch negative.

S&P said the CreditWatch placement reflects its view that it may lower the rating on Syngenta if and when its acquisition by China National Chemical Corp. (ChemChina) closes.

While the company has announced that there is committed financing for the transaction, details are unavailable at this stage. Additionally, the degree of the Chinese government's potential support is also unclear.

S&P noted that the transaction is subject to the consent of 67% of Syngenta shareholders and regulatory approvals from multiple governments. Additionally, Syngenta's U.S. bonds of $500 million due 2022 and $250 million due 2042, its $250 million private placement note, and syndicated facility incorporate change of control clauses may need to be repaid if the transaction closes.

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