S&P alters Syngenta view to positive

S&P said it changed Syngenta AG’s outlook to positive from stable and affirmed its BBB- issuer and debt ratings.

Syngenta is ultimately owned by China National Chemical Corp. Ltd. (ChemChina), which is being merged with Sinochem Group Co. Ltd. by the Chinese government.

“We view ChemChina's public commitment to maintain an investment-grade rating on its 100% ultimately owned subsidiary Syngenta AG as a supporting factor for the rating. We continue to assess Syngenta AG as a strategically important subsidiary of ChemChina. We assume that Syngenta AG would receive support from both its direct and indirect shareholders if necessary,” S&P said in a press release.

The outlook indicates a possible upgrade in ratings in the next 12-24 months if the combination results in an upgrade of ChemChina, S&P said.

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