Summary: AGCO Corp. Sep 11

Standard & Poors, September 2011

Abstract
The ratings on Duluth, Ga.-based AGCO Corp. reflect the company's satisfactory business risk profile and intermediate financial risk profile. Standard & Poor's Ratings Services expects revenue growth of more than 20% in 2011, since farm equipment demand fundamentals remain generally favorable. We expect AGCO's adjusted EBITDA margin to remain less than 10%, which we consider to be only fair. Still, this should allow the company to maintain credit measures appropriate for the current rating, including a funds from operations (FFO)-to-debt ratio of more than 30%. Although agricultural equipment markets have traditionally been quite cyclical, geographic diversity and solid market positions support AGCO's business. We expect the company's focus on internal improvements should maintain fair profitability and benefit cash flow generation...

Companies mentioned in this report are: AGCO Corp.
Action: Review

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This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.

AGCO Corp.

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