Rizobacter improves credit rating after restructuring over $42 million in debt

Argentine agricultural company Rizobacter has received a significant boost in its financial standing after successfully restructuring over $42 million in debt. The company extended its debt maturities to 2029, a move that has been recognized by the financial market.

Credit rating agency FIX responded by upgrading Rizobacter's long-term rating from CC (arg) to B (arg), assigning a stable outlook. This upgrade also applies to all outstanding negotiable obligations (ONs) and the company's short-term issuer rating, which moved from C (arg) to B (arg).

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obtained the necessary majorities to extend the maturities and thus cleared the capital market maturities of 2026, leaving a balance of US$7 million corresponding to the payment of those who entered the exchange to be made on June 28.

The primary driver for the upgrade was Rizobacter's successful debt exchange for its Series IX and X Negotiable Obligations. The company secured the necessary majority to extend maturities, clearing capital market deadlines for 2026. A remaining balance of $7 million for payments to those who participated in the exchange is due on June 28, a payment Rizobacter is reportedly able to meet.

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the company presents the cash to face said payment.

This operation allowed for the issuance of new Series XI bonds with a 9% annual fixed rate and a September 2029 maturity, replacing commitments originally due between 2026 and 2027. Combined with a previous operation on Series VIII Class B, Rizobacter has extended over $46 million in maturities. The company has also reached similar agreements with a substantial portion of its banking partners.

FIX also acknowledged Rizobacter's operational improvements, noting a successful project reconversion in 2025 that turned working capital positive and generated $58 million in free cash flow. This led to a debt reduction of approximately $65 million, bringing total debt to $119 million as of March 31, with $11 million in cash reserves. However, the agency cautioned that Rizobacter's financial flexibility remains constrained, and historical cash flow generation is low. Leverage is still high, with net debt at 9.2 times EBITDA, though down from 19 times in June 2025, and interest coverage stands at only 0.7 times.

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the company faced a process of reconversion of its projects during 2025 to reduce working capital, reversing it to positive by US$70 million as of March 2026.