S&P rates Camil Alimentos notes BB-

Standard & Poor's said it assigned a BB- long-term corporate credit rating to Camil Alimentos SA and a BB- rating to its proposed $150 million long-term international notes offered by Camil Finance Ltd., a wholly owned subsidiary.

The outlook is stable.

Ratings reflect the company's operation in the very fragmented and commodity-oriented Brazilian rice market, where the company faces competition from smaller, informal rice processors, the agency said.

Ratings also consider exposure to volume and price swings as well as the company's weakened credit metrics in the past and current fiscal years, S&P noted.

These factors are partly offset by Camil's strategic market position in the rice and beans business in Brazil, supported by strong brand recognition and larger production scale, the agency said.

The issuer had a total debt-to-EBITDA ratio at 3.2 times by the end of February.

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