Moody's: Monsanto notes at A2

Moody's Investors Service said it assigned an A2 rating to the proposed senior notes offering of Monsanto Co.

Proceeds from the offering will be used for general corporate purposes, which will likely include repayment and refinancing of other debt.

The A2 debt and Prime-1 commercial paper ratings on Monsanto reflect its strong cash generating capabilities resulting from robust conditions in both the seed and agricultural chemical markets, Moody's said.

Supporting the ratings are Monsanto's strong financial profile, leading market and technology positions in seeds and agricultural herbicides and continued global market penetration, the agency said.

The ratings consider business risk, large quarterly seasonal swings in working capital and free cash flow along with significant pension liabilities, the agency added.

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