Bioceres Crop Solutions Corp, a fully-integrated provider of crop productivity solutions designed to enable the transition of agriculture towards carbon neutrality, announced that Fix Scr, an affiliate of Fitch Ratings, has raised to A- (arg) from BBB+ (arg) its long-term credit rating of Rizobacter Argentina S.A. (“Rizobacter”), a Bioceres subsidiary. Fix also raised Rizobacter’s short-term credit rating to A2 (arg) from A3 (arg).
Fix cited improved margins and lower debt levels as the main reasons for raising its credit ratings of Rizobacter, both of which have ‘Stable’ outlooks.
Mr. Enrique Lopez Lecube, Chief Financial Officer of Bioceres, said, “Rizobacter’s improved credit ratings reflect, in part, our overarching commitment to strengthening Bioceres’ balance sheet and optimizing working capital sources to lower financing costs. As we continue growing revenue and gross profit, our focus remains on maintaining financial flexibility while we deploy capital in support of high-return growth opportunities around Bioceres’ HB technology and further expansion of our international business”.
Rizobacter Argentina is dedicated to the commercialization of microbiological products for the treatment of seeds applied to agriculture. The company has a history of over 35 years and has a dominant market position in inoculant marketing in Argentina.
The company and its subsidiaries carry out operations in Argentina, Brazil, Uruguay, Paraguay, Bolivia, the United States, South Africa, India, Colombia and France with more than 300 registered products, 700 distributors and 30 patents. The company’s sales are 75% concentrated in the domestic market, although the generation of funds is entirely denominated in dollars.
During the last three years, Rizobacter has shown a high level of growth in its sales at a compound annual rate of 23% driven by the development of the fertilizer segment and a high increase in adjuvants.
riRizobacter has a solid competitive position, both in the local and international markets. The company has a 23% share of the global market in inoculants and 30% in Argentina.