The ratings are supported by Archer Daniels Midland Co.'s (ADM) position as one of the world's leading agribusiness companies, with major market positions in agricultural processing and merchandising. This is offset by the continuing difficult agricultural operating environment, exacerbated by insufficient returns on recent investments, which has reduced ADM's credit protection measures. ADM has steadily built up its position as an important materials supplier to food and beverage companies and to farmers. Although ADM is a diversified commodity company in inherently cyclical businesses, its revenues and earnings are closely tied to oilseed and corn processing. A common denominator in the firm's core businesses is a fairly efficient production philosophy and vertical integration: Plants are positioned near commodity sources, and products
