S&P downgrades AGCO notes

S&P said it removed the unsecured issue-level rating for AGCO Corp. from under criteria observation and lowered the rating on its $300 million senior unsecured notes due 2021 to BB+ from BBB-.

The agency said the action stems solely from the application of its revised issue rating criteria and does not reflect any change in the assessment of the corporate credit rating.

“Because the debt at AGCO's operating subsidiaries (priority debt) represents more than 50% of the company's consolidated debt, we now rate AGCO's unsecured debt BB+, which is one notch below our corporate credit rating on the company, to more clearly reflect the subordination,” S&P said in a news release.

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