DBRS Confirms and Discontinues All Ratings of Cargill, Incorporated and Cargill Limited

DBRS Limited (DBRS) confirmed Cargill, Incorporated’s (Cargill or the Company) Issuer Rating and Senior Unsecured Debt rating at “A” and Commercial Paper rating at R-1 (low). DBRS also confirmed the Commercial Paper rating of Cargill Limited (guaranteed by Cargill) at R-1 (low). All trends are Stable. DBRS discontinued Cargill Limited’s 10 1/8% Senior Notes rating as the notes were repaid at maturity at the end of November 2017.

The confirmation of the ratings recognizes Cargill’s improved earnings in F2017 and Q1 F2018 across segments reflecting changes in commodity prices as well as the Company’s cost-reduction and efficiency improvement initiatives. DBRS also notes the Company’s ongoing efforts to rebalance its portfolio of businesses (divesting of certain non-core business and investing in agricultural and food businesses in which Cargill believes it can become a global leader). The Company’s financial profile remains supportive of the rating as cash flows remain steady and credit metrics improved because of the early repayment of $2.1 billion in balance-sheet debt in F2017. Cargill’s ratings continue to be supported by its leading market position and strong product and geographic diversification. The ratings also incorporate the effects of volatility in commodity prices and trading as well as risks related to the Company’s continuing investments in growth.

Subsequent to the confirmation, DBRS has discontinued all ratings of Cargill and Cargill Limited at the request of the Company. The discontinuation of the ratings is unrelated to Cargill’s credit risk profile.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

The principal methodologies are Rating Companies in the Consumer Products Industry; DBRS Criteria: Commercial Paper Liquidity Support for Non-Bank Issuers; and DBRS Criteria: Guarantees and Other Forms of Support, which can be found on our website under Methodologies.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The rated entity or its related entities did participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.