S&P changes AGCO outlook to positive

S&P said it changed its outlook for AGCO Corp. to positive from stable and affirmed the BBB- ratings on the issuer and the debt issued by its subsidiary AGCO International Holdings BV.

“We expect the acquisition of 85% of Trimble Agriculture and the divestiture of AGCO's grain and protein segment to accelerate profitability improvement. We believe Trimble Agriculture's high-margin technology portfolio will increase AGCO's S&P Global Ratings-adjusted EBITDA margin by more than 50 basis points (bps) during 2025. Our adjusted credit measures do not reflect the full benefit in 2024 because we expect the acquisition will close during the second quarter of the year and come with transaction costs,” the agency said in a press release.

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