S&P rates Louis Dreyfus bonds BB+

S&P said it assigned its BB+ issue rating to the senior unsecured bonds Louis Dreyfus Co. BV, which S&P rates BBB-, plans to issue. The offering is expected to be benchmark-sized, maturing in five to seven years, the agency said.

“We apply a one-notch downward adjustment on the BBB- issuer credit rating on Louis Dreyfus Commodities to derive our BB+ issue rating on the proposed senior unsecured bonds, mainly reflecting the risk of structural subordination stemming from a high amount of debt sitting at the operating subsidiaries in excess of 50% of total debt,” S&P said in a press release.

Proceeds are expected to be used to refinance debt, fund some investments and general corporate purposes.

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