Bulletin: Cargill Inc. Remains Insulated From Impact Of COVID-19 As Demand Is Stable; Ratings Unchanged

NEW YORK (S&P Global Ratings) April 13, 2020--S&P Global Ratings said today that Cargill Inc.'s (A/Stable/A-1) core businesses should hold up fairly well despite economic headwinds from COVID-19. As a key intermediary between farmers and food producers, Cargill operates primarily in the food sector, which other than the food service channel is fairly well insulated from the current economic fallout in response to the COVID-19 pandemic. Several core business lines, like food and ingredients manufacturing, meat processing, and feed production and distribution should continue benefitting from stable consumer demand. Farmer demand for feed and crop inputs is also still healthy, albeit possibly for lower margin products as agricultural commodity prices like corn, ethanol, and milk may remain depressed, muting the

...NEW YORK (S&P Global Ratings) April 13, 2020--S&P Global Ratings said today that Cargill Inc.'s (A/Stable/A-1) core businesses should hold up fairly well despite economic headwinds from COVID-19. As a key intermediary between farmers and food producers, Cargill operates primarily in the food sector, which other than the food service channel is fairly well insulated from the current economic fallout in response to the COVID-19 pandemic. Several core business lines, like food and ingredients manufacturing, meat processing, and feed production and distribution should continue benefitting from stable consumer demand. Farmer demand for feed and crop inputs is also still healthy, albeit possibly for lower margin products as agricultural commodity prices like corn, ethanol, and milk may remain depressed, muting the outlook for farmer profits for the year. Supply chain and food processing facilities could face local disruptions but mitigating those risks is the company's highly diversified global...

Bulletin