TEXT-S&P Raises Nufarm Snr Note Rtg To 'BBB-', Recovery Rtg To '1'


(The following was released by the rating agency)

MELBOURNE (Standard & Poor's) Oct. 12, 2012-Standard &Poor's Ratings Services today said that it had raised its ratingon Nufarm Ltd.'s A$381 million senior secured syndicated bankfacility to 'BBB-' from 'BB'. At the same time, we have raisedthe recovery rating on the secured bank facility to '1' from'3'. The higher ratings reflect a combination of the reductionin the facility size to A$381 million from A$625 million, andour view of Nufarm's improved earnings performance, which alsoboosts recovery prospects. The issuer credit rating on Nufarmremains unchanged, at 'BB' with a stable outlook.

The recovery rating of '1' indicates our expectations forvery high recovery (90%-100%) should a default event occur. Oursimulated default scenario assumes a payment default in 2014 dueto material weakening in Nufarm's operating results arising froma significant and prolonged weakening in global demand from theagribusiness sector.

The 'BB' rating on Australia-based Nufarm Ltd., one of theworld's top-10 makers of crop-protection products (such asherbicides, insecticides, and fungicides), reflects thecompany's exposure to cyclical agribusiness sectors, with astrong earnings bias to the second-half of the year. Theseweaknesses are partially offset by our view of the company'ssolid position in select global crop-protection markets,geographically-diverse operations, and strategic alliances withkey global players. RELATED CRITERIA AND RESEARCH 2008 CorporateCriteria: Analytical Methodology, April 15, 2008