This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Bond Market News
Adecoagro Downgraded to BB- by S&P
December 19, 2025
Adecoagro was downgraded by one notch to BB- from BB by S&P. The downgrade reflects Adecoagro’s weakened credit profile following the acquisition of a 90% stake in Profertil SA, Argentina’s largest urea producer, for $1.1bn this month. The transaction was financed through a mix of cash, new debt and equity. As a result of the acquisition, and accounting for Adecoagro’s weaker operational performance, S&P projects the company’s leverage to rise sharply, with debt-to-EBITDA forecasted to peak at 4.7x (3.0x pro forma by end-2025), compared with 1.6x in 2024. While Profertil would add diversification and is expected to contribute meaningfully to EBITDA from 2026 onward, integration risks, higher exposure to Argentina and persistent pressure on Adecoagro’s legacy businesses remain key concerns, the rating agency noted. Mitigating factors include equity support from Tether Investments (the company’s current owner), diversified cash flows from Brazil and Uruguay, a solid dollar liquidity position and an extended maturity profile.
Adecoagro’s dollar bonds traded stable with its 7.5% 2032s at 93.4, yielding 8.85%.
Go back to Latest bond Market News
Related Posts:
Sinopec Returns to the Dollar Bond Market for a Second Time in 2017
September 13, 2017
S&P Upgrades Yanlord by One Notch to ‘BB’
March 16, 2018
BondbloX Pte. Ltd. is regulated by the Monetary Authority of Singapore as a Recognised Market Operator ("RMO") and exempted from Section 49(1) of the Securities and Futures Act (Cap. 289) ("SFA") under Section 49(7) of the SFA.