Research Update: Archer Daniels Midland Co. 'A' Rating Affirmed, Outlook Stable, Despite Lower Projected Earnings

Although Archer Daniels Midland Co. (ADM) continues to face challenges in businesses like ethanol and grain merchandising, the company's modest cash flow ratios continue to support the rating. We have revised our forecast to incorporate lower revenues and EBITDA for 2015 and 2016. We are affirming the ratings on the company, including the 'A' corporate credit rating. The outlook remains stable, reflecting our expectation that ADM will manage cash flows to maintain debt to EBITDA below 2.0x over the next two years. On Dec. 28, 2015, Standard&Poor's Ratings Services affirmed its ratings on Decatur, Ill.-based Archer Daniels Midland Co., including the 'A' corporate credit rating. The outlook is stable. ADM reported debt outstanding of $6.7 billion at Nov.

...(Editor's Note: This research update relates to a rating affirmation made on Dec. 28, 2015. Due to a processing error we did not associate it with a research update at the time. A full research update follows. )...

Research Update