Fitch rates Viterra notes BBB-

Fitch Ratings said it gave Viterra Finance BV's planned issue of senior unsecured notes guaranteed by operating subsidiary Viterra BV, an expected BBB- rating. Viterra Finance is a subsidiary of Viterra Ltd., also rated BBB-.

“The notes are rated in line with Viterra's issuer default rating, despite the presence of some secured debt in the group's capital structure. We estimate that prior-ranking debt is limited and not sufficient 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 materially over 2022-2024,” Fitch said in a press release.

The agency said it considers the planned notes neutral because they will be used in part for refinancing a $1.7 billion bridge facility in place for the acquisition of the U.S. grain and ingredient businesses of Gavilon Agriculture Investment Inc. The deal is expected to close in the second half of 2022.

The outlook is stable.

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