DBRS Releases Report on Agrium

DBRS has today released a report that supports the recent confirmation of the Issuer and Senior Debt ratings of Agrium Inc. (Agrium or the Company), both at BBB with Stable trends.

The rating confirmations reflect Agrium’s position as one of the world’s leading agricultural retailers, as well as an important primary producer of nitrogen, potash and phosphate-based fertilizers.

The favourable outlook for farm commodity prices, the expected acquisition of Viterra retail assets in
early 2013 and a lower level of disruption to potash production at Vanscoy than in 2011 all lead to DBRS’s expectation that Agrium’s earnings will be strong in 2012 and 2013, rivaling record levels in 2011 despite lower expected potash prices. Nonetheless, Agrium’s credit metrics are expected to weaken despite robust earnings, as debt levels increase with higher impending cash outflows.

DBRS expects the Company will be judicious in its spending choices in order to maintain its balance sheet strength.

Notes:
Today’s report and the January 18, 2013, press release are available at www.dbrs.com or by contacting us at info@dbrs.com.