Viterra Inc.

  • ID: 1784798
  • April 2008
  • Standard & Poors
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Leading market position in Canada Improving operating margins Moderate capital structure Unproven growth strategy Integration risk following acquisition Commodity-like nature for most of its business The ratings on Regina, Sask.-based Viterra Inc. (formerly Saskatchewan Wheat Pool) reflect the fundamentals of the agribusiness industry, which is low margin and cyclical; management's aggressive growth strategy through acquisition and diversification; and the execution risk surrounding the integration of Agricore United's (AU) activities. These features are partially mitigated by Viterra's leading position in the Canadian grain handling and agribusiness industries, the expected increase in profitability from the synergies between Viterra and AU, and the company's moderate capital structure. Viterra is Canada's largest agribusiness, with annualized revenues of about C$4.4 billion following its acquisition of...

Companies mentioned in this report are: Viterra Inc.,Canadian Wheat Board
Action: Review

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research Type: Full Analysis

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Viterra Inc.,Canadian Wheat Board

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