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Adecoagro Downgraded by Three Notches to B2 by Moody’s
December 24, 2025
Adecoagro was downgraded by three notches to B2 from Ba2 by Moody’s. The review for the downgrade was initiated after the company announced its acquisition of Argentine fertilizer producer Profertil SA. The downgrade reflects Adecoagro’s materially higher exposure to Argentina, with EBITDA generated in the country expected to rise to about 51%, alongside a greater concentration of assets there. As Profertil’s operations are entirely Argentina-based, Adecoagro’s credit profile is now constrained by the sovereign’s foreign currency country ceiling of B2. Adecoagro now owns 90% of Profertil, with the remaining 10% held by ACA. The $1.1bn acquisition will be funded through a mix of debt (up to $600mn), equity ($300mn), and cash, lifting Adecoagro’s debt to around $1.9bn from $1.3bn as of June 2025. Leverage is expected to peak in late-2025 and early-2026, before improving to about 2.8x by end-2026, according to Moody’s. Strategically, the deal enhances diversification by adding a dominant fertilizer business supplying roughly 60% of Argentina’s urea demand, with competitive access to gas and port infrastructure. Last week, S&P had downgraded the company to BB-.
Adecoagro’s dollar bonds traded stable with its 7.5% 2032s at 94.3, yielding 8.6%.
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