DBRS changes AGT view to positive

DBRS said it confirmed the issuer rating and senior secured high-yield notes rating of AGT Food & Ingredients Inc. at B and changed the trends to positive from stable. The recovery rating on the notes remains RR4.

The agency said the trend change reflects the company’s improving earnings profile since the inception of the rating in 2013 driven by a recovery in the company’s legacy pulse-processing segment and solid growth of its new higher-margin, less-cyclical food ingredients and packaged foods segment. In addition, the company completed a bought deal for C$80 million of common shares in November, the proceeds of which were and are to be used to invest in growth, repay debt and fund working capital.

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