Exposure to cyclical and seasonal agribusiness sector Solid position in selected global crop-protection markets Some benefit from geographically-diverse operations Improvement in working capital management required to restore credit-protection metrics in the short term Earnings bias toward second-half Principal reliance on earnings from herbicides The negative outlook reflects our view that Nufarm Ltd. faces challenges in restoring its metrics to those comfortably in line with our expectations for the 'BB' rating. If the company is unable to restore its adjusted debt-to-EBITDA to about 3.5x and generate meaningful positive free operating cash flow metrics, or its liquidity deteriorates during the near term, we may lower the rating to 'BB-'. We may revise the outlook to stable if Nufarm were to restore its
