Research Update: Nufarm Ltd. 'BB' Rating Placed On CreditWatch Negative As Earnings Recovery Stalls

While demand for Nufarm Ltd.'s products is improving, ongoing weak pricing and poor performance of its seeds business leaves its creditworthiness vulnerable if earnings remain low. Its ratio of debt to EBITDA is likely to exceed our expectation for the rating in fiscal 2025 (ending Sept. 30, 2025), as it did in fiscal 2024. Given continued uncertainties over the timing of an agrochemical market recovery, we expect the company's earnings to remain unpredictable over the next one to two years. On May 22, 2025, S&P Global Ratings placed its 'BB' long-term issuer credit rating on Nufarm on CreditWatch with negative implications. We also placed our 'BBB-' long-term issue rating on the company's A$210 million senior secured bank facility (recovery rating

...Rating Component Scores Component Foreign currency issuer credit rating ##/Watch Neg/-- Local currency issuer credit rating ##/Watch Neg/-- Business risk 5 - Weak Country risk 2 - Low Industry risk 4 - Moderately high Competitive position 5 - Weak Financial risk 4 - Significant Cash flow/leverage 4 - Significant Anchor ##- Diversification/portfolio effect 3 - Neutral/Undiversified Capital structure Neutral Financial policy Neutral Liquidity Adequate Management and governance Neutral Comparable rating analysis Positive (+1 notch) Stand-alone credit profile ##...

Research Update