Moody's assigns Syngenta Group Baa1

Moody's Investors Service said it assigned a first-time Baa1 issuer rating to Syngenta Group Co., Ltd.

“Syngenta Group's Baa1 issuer rating combines its stand-alone credit profile and a four-notch uplift, reflecting Moody's expectation of support from the company's state-owned parent, Sinochem Holdings Corp. Ltd. and ultimately the government of China (A1 stable), in times of need.

“The support assessment reflects Syngenta Group's 100% ownership by, and close link with, Sinochem Holdings; status as the key platform to aggregate Sinochem Holdings' core agrochemical businesses; track record of financial support from Sinochem Holdings, through its subsidiaries, by subscribing to and guaranteeing the perpetual debts issued by Syngenta Group; and strategic importance to China in terms of food security and transformation and upgrade of China's agriculture sector,” Moody’s said in a press release.

The outlook is stable. The agency explained it forecasts Syngenta’s weak financial profile will improve in the next 12~18 months to a level appropriate for its rating and that there will be no change in support from its parent.

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