Syngenta rating raised on strong credit, strategy

04 July 2007 16:26  [Source: ICIS news]

LONDON (ICIS news)--Moody’s Investors Services on Wednesday upgraded its debt rating for Syngenta, reflecting the agrochemicals group’s consistently strong credit over the past three years.

 

Syngenta’s performance has been “underpinned by a strong operating cash flow generation and a prudent financial strategy despite large cash returns to shareholders,” said Moody’s analyst Francois Lauras.

 

Syngenta was upgraded to A2/P-1 from A3/P-2 with outlook stable, meaning it was subject to a very low credit risk and has a superior ability to repay short-term debt obligations.

 

The group’s recent operating results have demonstrated the resilience of its strategy, focused on product innovation and fast growing segments such as seeds and professional products, said Moody’s.

 

This has allowed Syngenta to post share gains in a stagnant crop protection market while ongoing efficiency initiatives resulted in significant cost savings, mitigating the effect of a challenging operating environment and increased oil-related costs, it added.

 

In its outlook, Moody’s said it expected Syngenta’s innovation-focused growth strategy to continue to underpin cash-flow generation, while the growing emphasis on biofuels should stimulate demand for its crop protection and seeds products.

By: Mark Watts
+44 20 8652 3214

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