S&P upgrade Nufarm to BB credit rating and Stable Outlook
24 Nov 2021
Nufarm Limited (ASX: NUF) advises that S&P Global Ratings (S&P) has upgraded Nufarm’s credit rating to BB and revised the outlook to stable.
In the report, S&P noted
"Nufarm Ltd’s continued improvement in its working capital management and strong trading performance across all operating regions, particularly Europe, have strengthened the group’s credit metrics…. We view the introduction of the group’s capital management framework, which prioritizes balance sheet strength and free cash flow ahead of shareholders returns as credit positive. We expect improved free operating cash flow generation and Nufarm’s capital management framework to support sustainably reduced leverage over the forecast period."
Nufarm’s CEO and Managing Director, Greg Hunt said:
“Nufarm welcomes the decision by S&P to upgrade its credit rating and revise the outlook to stable which recognises our focus on working capital management, improved trading performance in all regions and the introduction of the revised capital management framework.”
Click here to view a copy of the S&P Global Ratings report.