Moody's gives Baa1 to Syngenta notes

Moody's Investors Service said it assigned a Baa1 rating to the proposed senior unsecured notes to be issued by Syngenta Group Finance Ltd. and unconditionally and irrevocably guaranteed by Syngenta Group Co., Ltd. (SG, Baa1 stable).

The proceeds from the proposed issuance will be used for general corporate purposes, including the repayment of SG's existing debt.

The outlook is stable.

“The Baa1 rating on the proposed notes reflects the irrevocable and unconditional guarantee from SG and the fact that the guaranteed notes will rank pari-passu with SG's other senior and unsecured obligations,” said Gerwin Ho, a Moody's vice president and senior credit officer, in a news release.

“The proposed notes will not materially increase SG's overall debt level because part of the bond proceeds will be used to refinance the company's existing debt.”

SG's Baa1 issuer rating incorporates its standalone credit profile and a four-notch uplift, reflecting Moody's expectation of support from the company's state-owned parent, Sinochem Holdings Corp. Ltd., and ultimately the Government of China (A1 stable) when need.

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