Fitch assigns Viterra, notes BBB-

Fitch Ratings said it assigned Viterra Ltd. a BBB- long-term issuer default rating with a stable outlook. The agency also gave an expected BBB- rating to the upcoming senior unsecured notes by Viterra Finance BV, a 100% subsidiary of Viterra.

“The investment-grade rating factors in management's commitment to maintaining a conservative capital structure. We assume that M&A, expansionary capex and dividends would not lead to an increase of readily marketable inventory (RMI)- adjusted net debt and leverage, which we forecast will remain around 2.5x over 2021-2024. The planned notes are neutral for the IDR as we assume that proceeds will be used to refinance debt of operating companies and will not increase leverage,” Fitch said in a press release.

“The notes are rated in line with Viterra's IDR of BBB-, despite the presence of secured debt in the group's capital structure. We estimate that prior-ranking debt is insufficient to indicate a material possibility of subordination and lower recoveries for unsecured notes. We also assume that the amount of prior-ranking debt will not increase over 2021-2024,” the agency said.

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