S&P rates new UAP Holding discount notes B-

Standard & Poor's said it assigned its B+ corporate credit rating to UAP Holding Corp., the parent company of crop protection and agriculture distributor United Agri Products Inc. (B+/stable/--), and assigned its B- rating to UAP Holding's $82.5 million senior discount notes due 2012.

S&P said these notes will have no credit impact on the ratings of operating company United Agri Products, which have been affirmed. These include a B+ corporate credit rating, a BB- senior secured credit facility rating, and a B senior unsecured notes rating.

The outlook is stable.

S&P said the ratings reflect UAP's high debt levels following its leveraged spinoff from ConAgra Foods Inc. (BBB+/stable/A-2) completed Nov. 24 and also reflect UAP's participation in a highly variable and competitive farm supply industry. Somewhat mitigating these factors are the company's national distribution channels and defendable market share.

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