Summary: Nufarm Ltd.

Exposure to cyclical and seasonal agribusiness sector Relatively small scale compared with its major global competitors Solid position in selected global crop-protection markets Some benefit from geographically-diverse operations Successful implementation of restructuring measures required to restore credit metrics Earnings bias toward second-half Principal reliance on earnings from herbicides The stable outlook reflects our view that Nufarm Ltd.'s disciplined working capital management and underlying growth will maintain its adjusted debt-to-EBITDA at about 3.0x. While costs associated with the company's restructuring initiatives are likely to adversely affect its credit metrics in the near term, we view these initiatives as important to restoring the company's longer-term profitability and credit metrics. The stable outlook also assumes that Nufarm's appetite for acquisitions will remain modest

...Outlook: Stable The stable outlook reflects our view that Nufarm Ltd.'s disciplined working capital management and underlying growth will maintain its adjusted debt-to-EBITDA at about 3.0x. While costs associated with the company's restructuring initiatives are likely to adversely affect its credit metrics in the near term, we view these initiatives as important to restoring the company's longer-term profitability and credit metrics. The stable outlook also assumes that Nufarm's appetite for acquisitions will remain modest and limited to small bolt-on opportunities. We also expect Nufarm to generate meaningful positive free operating cash flow metrics as well as adequate liquidity. We note, however, the stable outlook does not incorporate any event risk associated with industry consolidation that we expect to be an ongoing feature across the global chemicals industry over the medium term....

Summary