The ratings on Duluth, Ga.-based AGCO Corp. reflect the company's satisfactory competitive business position as the world's third-largest agricultural equipment manufacturer, with annual sales of $5.4 billion. The company's aggressive financial profile had made it vulnerable during the last prolonged cyclical downturn, but with the market recovery of the last several years, AGCO's credit measures are in line with the ratings. The company's debt usage should diminish in the future, as AGCO is now expected to be less acquisitive. The rebound in AGCO's operating performance that started in 2003 has weakened somewhat in recent quarters, as market conditions for agricultural equipment softened. Revenues for the trailing 12 months declined to $5.2 billion as of June 30, 2006, from $5.5 billion...
Companies mentioned in this report are: AGCO Corp.
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