DBRS Places Viterra Ratings Under Review with Developing Implications

DBRS has today placed the BBB (low) Issuer Rating and Senior Unsecured Notes rating of Viterra Inc. (Viterra or the Company) Under Review with Developing Implications.

This action follows Viterra’s confirmation that it has entered into “exclusive discussions” with a third party over the sale of the Company. The identity of the third-party potential purchaser has not been disclosed and any transaction would be subject to the approval of shareholders. The likelihood of an agreement being reached has nevertheless increased and, as a result of the surrounding uncertainty, DBRS believes that the appropriate action is to place the rating Under Review with Developing Implications.

In its review, DBRS will focus on the outcome of the ongoing discussions, including the identity of the third-party potential acquirer, the business risk profile of the entity after any possible transaction, the potential benefits and integration risks of any combination, and the final form of any proposed transaction.

Viterra’s current BBB (low) ratings are based on its leading market position in the Canadian grain handling industry and its enhanced geographic diversification following the integration of Australia-based ABB Grain Ltd., as well as its elevated cash flow generating capacity and reasonable long-term debt levels.

Note:
The applicable methodology is Rating Grain Companies, which can be found on our website under Methodologies.