Content provided in partnership with

Business Services Industry

Fitch Rates ADM's Proposed $700MM Notes 'A+'; Outlook Negative

Business Wire, Feb 28, 2008

CHICAGO -- Fitch Ratings has assigned an 'A+' rating to Archer Daniels Midland Company's (ADM) proposed offering of $700 million notes due in 2018.

ADM's current ratings are as follows:

--Long-term Issuer Default Rating (IDR) 'A+';

--Senior unsecured notes 'A+';

--Convertible notes 'A+';

--Credit facilities 'A+';

--Short-term IDR 'F1';

--Commercial paper 'F1'.

ADM's total debt was $9.8 billion at Dec. 31, 2007. The Rating Outlook is Negative.

Most Popular Articles in Business: Research and Markets : Tesco Plc - SWOT Framework Analysis; Do Us a Flavor - Ben & Jerry's Issues a Call for Euphoric New Flavors; eBay made easy: ready to start an eBay business? These 5 simple steps will ...; Katrina's lawsuit surge: a legal battle to force insurers to pay for flood ...; Wal-Mart's newest distribution center opened last month near the southwest ...; More »

ADM intends to apply the net proceeds of this offering to refinance commercial paper and for general corporate purposes. The proposed debentures contain a Change of Control Triggering Event. Upon the occurrence of both a change of control and rating downgrades below investment grade, unless ADM has exercised its right to redeem the debentures, the company will be required to make an offer to purchase the notes at a price equal to 101% of the principal amount plus accrued and unpaid interest. The debentures will be issued under the company's indenture dated Sept. 20, 2006. The indenture contains limitations on secured funded debt, sale leaseback transactions, as well as mergers and sales of assets. However, there are no financial covenants in the indenture.

For additional information see Fitch's related press release on ADM dated Feb. 26, 2008 titled 'Fitch Revises ADM's Outlook to Negative; Affirms IDR at 'A+" on the Fitch Ratings web site at www.fitchratings.com.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.

Business Services Industry

Fitch Rates ADM's Proposed $700MM Notes 'A+'; Outlook Negative

Business Wire, Feb 28, 2008

Find Research Guides for:

Find Featured Titles for: Business

Most Popular Articles in Business

Most Popular Publications in Business