S&P gives Louis Dreyfus Co. BBB-

S&P said it assigned a BBB- rating to Louis Dreyfus Co. BV, citing a new ownership structure with Abu Dhabi Developmental Holding Co. PJSC (ADQ) taking an indirect 45% stake.

After closing, Louis Dreyfus will be in a position to repay at least $800 million of debt and a further $251 million at a later stage, with an agreement for progressive repayment of the remainder.

“LDC has reported very strong operating performance so far this year, with our forecast EBITDA estimated to reach $1.2 billion in 2020 and stabilize at that level in 2021, supported by the expansion of the oilseeds business in emerging markets and the implementation of a fixed-cost savings plan,” S&P said in a press release.

The outlook is positive. “The positive outlook reflects the likelihood we could upgrade LDC over the next 12-24 months if it maintains EBITDA of at least $1 billion, demonstrating the resilience of its business model in potentially less favorable market conditions,” the agency said.

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