Nufarm has proposed to raise equity of A$303 million, which would restore the company's balance sheet and help fund continued growth of the business. We consider the equity raising to have increased the likelihood of rating stability over the next 12 months; however, rating stability will require a longer track record of improved operating performance. We are affirming our 'BB' issuer credit rating on Nufarm. The negative outlook reflects our view that Nufarm may face challenges in restoring its metrics in line with our expectations for the 'BB' rating, if there are prolonged dry weather conditions or integration risks associated with Nufarm's recent acquisitions. On Oct. 3, 2018, S&P Global Ratings affirmed its 'BB' issuer credit rating on Nufarm Ltd.
