S&P upgrades Louis Dreyfus notes

S&P said it raised to BBB from BBB- its long-term issue ratings on the senior unsecured notes issued by Louis Dreyfus Co. Finance BV, one of the financing vehicles of Louis Dreyfus Co. BV (LDC).

“This follows recent changes to the group's debt structure that, in our view, materially reduce subordination risk for senior unsecured bondholders. We currently rate the €650 million senior unsecured notes due in 2025 and the €500 million senior unsecured notes due in 2028,” the agency said in a press release.

S&P noted LDC created two new group financing vehicles and transferred into them significant amounts of bank debt that was previously held in operating companies. The new financing vehicles, LDC NA Finance in the U.S. and LDC Funding SSEA in Asia are fully and indirectly owned by LDC.

LDC then transferred its ¥64.9 billion samurai loan from its Swiss operating subsidiary to LDC BV, the holding company, and its $955 million farm credit system from its U.S. subsidiary to LDC NA Finance. It also raised about $400 million of new debt at its group financing vehicles, which were then downstreamed to operating subsidiaries, the agency explained.

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