Federated Co-operatives Limited: Rating Report

On July 22, 2019, DBRS Limited (DBRS) confirmed the Issuer Rating and Senior Unsecured Notes (the Notes) rating of Federated Co-operatives Limited (FCL or the Company) at BBB (high) with Stable trends. The confirmations reflect solid operating performance in F2018, primarily benefiting from increased Energy segment earnings and modest growth in Agriculture segment sales. The ratings continue to be supported by the strong brand and market position of the Co-operative Retailing System (CRS), the co-operative (co-op) structure and high barrier to entry of the refinery business, while also continuing to consider the single-asset nature of the refinery, the associated environmental and regulatory risks and intense competition.