Moody's ups UAP, United Agri

Moody's Investors Service said it raised UAP Holding Corp.'s senior implied rating to B1 from B3 and removed the ratings from review, where they were placed on Nov. 5. The outlook is stable.

Moody's ratings on existing debt at both UAP Holding and United Agri Products Inc. were raised, including UAP's senior implied rating to B1 from B3, senior unsecured issuer rating to B3 from Caa2 and senior unsecured discount notes due 2012 to B3 from Caa2 and United Agri Products' $500 million guaranteed senior secured revolving credit facility due 2008 to Ba3 from B1 and $225 million of 8¼% guaranteed senior unsecured notes due 2011 to B1 from B3.

The rating action was prompted by better than expected operating performance and by management's successful partial initial public offering, which reflects a more creditor friendly strategy to return value to existing shareholders, Moody's said.

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