S&P rates AGCO notes BBB-

Standard & Poor's said it affirmed its ratings, including the BBB- corporate credit rating, on AGCO Corp. The outlook is stable.

At the same time, S&P said it assigned a BBB- issue-level rating to AGCO's proposed $300 million senior unsecured notes due 2021. According to S&P, AGCO will use proceeds of the note offering to fund a portion of its planned acquisition of Illinois-based GSI Holdings Corp.

"The affirmation reflects our expectation that AGCO's credit measures will remain adequate for the rating following the GSI acquisition, which will more than double total adjusted debt," said S&P credit analyst Dan Picciotto in a news release.

"Prior to the GSI acquisition announcement, AGCO's credit measures were strong, which we believe provided sufficient capacity for additional debt. By the end of 2012, we believe credit measures will moderately exceed our expectations for the rating," he said.

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