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TEXT-S&P keeps Viterra on watch pos pending acquisition by Glencore
2012年10月4日 / 晚上8点33分 / 5 年前

TEXT-S&P keeps Viterra on watch pos pending acquisition by Glencore

Overview
     -- The 'BBB-' ratings on Viterra Inc. remain on CreditWatch, where
they were placed with positive implications June 28, 2012, pending the
acquisition by Glencore International PLC.
     -- We will resolve this CreditWatch when we have a clear view on the 
completion of Glencore's acquisition of Viterra, which the companies now 
expect before Nov. 15, 2012.
     -- Upon completion of the acquisition, we expect to equalize our issuer 
and issue-level ratings on Viterra, given the strategic importance of 
Viterra's operations to Glencore.

Rating Action
On Oct. 4, 2012, Standard & Poor's Ratings Services kept its 'BBB-' ratings on 
Viterra Inc. on CreditWatch, where they had been placed with positive 
implications June 28. 

The CreditWatch remains in place as the company's acquisition by Glencore 
International PLC, the parent of Glencore International AG (BBB/Watch 
Pos/A-2), is reviewed by China's Ministry of Commerce under its anti-monopoly 
law.

Rationale
The acquisition of grain handler Viterra by commodities trader Glencore has 
cleared all key hurdles except the Chinese competition review, including 
Viterra shareholder approval and competition authority clearance in Canada, 
the U.S., Australia, and Europe. The transaction close has been extended 
several times, and the companies now expect the closing before Nov. 15.

The ratings on Viterra reflect Standard & Poor's view of the company's 
satisfactory business risk profile, which is supported by strong market 
positions in key grain-producing regions in Canada and Australia and more 
modest positions in downstream agribusiness and processing. In addition, we 
view the company's financial risk profile as intermediate, characterized by 
low debt leverage and strong liquidity. Viterra continues to generate solid 
financial performance for the 'BBB-' rating, with last 12 months debt to 
EBITDA of 1.7x and strong free cash flow amid solid grain handling volumes and 
margins.

CreditWatch
We will resolve this CreditWatch when we have a clear view on the completion 
of Glencore's acquisition of Viterra. Upon closing, we expect to equalize our 
issuer and issue-level ratings on Viterra with those on its new parent, 
Glencore, given the importance of Viterra's operations to Glencore's strategy.

Related Criteria And Research
     -- Key Credit Factors: Criteria For Rating The Global Branded Nondurable 
Consumer Products Industry, April 28, 2011
     -- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008
     -- 2008 Corporate Criteria: Ratios And Adjustments, April 15, 2008

Ratings List
Ratings Remain On CreditWatch

Viterra Inc.
Corporate credit rating   BBB-/Watch Pos/--
Senior unsecured debt     BBB-/Watch Pos


Complete ratings information is available to subscribers of RatingsDirect on 
the Global Credit Portal at www.globalcreditportal.com. All ratings referenced 
herein can be found on Standard & Poor's public Web site at 
www.standardandpoors.com. Use the Ratings search box located in the left 
column.

我们的标准:汤森路透“信任原则”
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