Moody’s changes BRF view to stable

Moody’s Investors Service said it affirmed BRF SA’s Ba2 corporate family rating and its senior unsecured ratings as well as changing the outlook to stable from negative.

The change of BRF’s outlook to stable reflects the improvements observed in credit metrics in the past few quarters, as a result of the reorganization within the company, including changes in the management, operations, logistics and commercial strategies, combined with asset divestitures and liability management initiatives, the agency said.

These internal changes, coupled with some improvement observed in BRF’s main markets and the spread of the African Swine Fever in China and other countries in Asia/Eastern Europe, have helped a recovery in BRF operating performance with positive free cash flow generation in 2019.

“The stable outlook reflects our expectations that BRF will present steady credit metrics in the next 12 to 18 months, and maintain an adequate liquidity profile, managing capital spending and dividend distribution in a prudent manner, avoiding compromising its leverage and cash flow,” said Moody’s in a press release.

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