Standard&Poor's said today that the merger between Minnesota Corn Processors LLC (MCP; unrated) and Archer Daniels Midland Co. (ADM; A+/Stable/A-1) would not have an impact on the ratings or outlook of ADM. Under the terms of the merger agreement, ADM will pay $2.90 for each Class A unit (136.6 million units were outstanding at April 25, 2002) and the assumption of MCP's debt. Standard&Poor's expects that ADM will fund this transaction from its sizable cash balances. ADM's credit measures since 1998 have been well below the average of earlier years, mirroring the difficult agricultural operating environment. There is no room in the current ratings or outlook for further debt financed acquisitions. The transaction is subject to
