Moody's confirms Land O'Lakes

Moody's Investors Service said it confirmed Land O'Lakes Inc.'s Ba1 corporate family rating and Ba1 probability of default rating, along with its $375 million senior secured revolving credit facility due April 2013, $155 million of 6.24% senior secured notes due December 2016, $85 million of 6.67% senior secured notes due December 2019 and $85 million of 6.77% senior secured notes due 2021 at Baa3 (LGD 3, 38%). Its cooperative's SGL-3 speculative grade liquidity rating is unchanged. Land O'Lakes Capital Trust I's $191 million of 7.45% capital securities also was affirmed at Ba2 (LGD 5, 87%).

This concludes the review for possible upgrade that began on March 25, and the outlook is positive.

The ratings reflect the strength of the eponymous Land O' Lakes brand, Moody's said, and the cooperative's high market shares in crop inputs, shell and specialty eggs and animal feed.

The rating also reflects the cooperative's high exposure to agricultural and commodity markets, which results in periods of high sales and cash flow volatility, the agency said.

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