Fitch: JBS, Brasil Foods view to negative

Fitch Ratings said it revised the outlook for JBS SA, BRF - Brasil Foods SA and Marfrig Alimentos SA to negative from stable.

The agency also affirmed JBS's foreign-currency issuer default rating at BB-, local-currency issuer default rating at BB-, notes due 2016 at BB- and national scale rating at A-(bra).

JBS USA LLC's foreign-currency issuer default rating was affirmed at BB-, local-currency issuer default rating at BB- and term loan B facility due in 2018 at BB.

JBS USA Finance's foreign-currency issuer default rating was affirmed at BB- and local-currency issuer default rating at BB-.

BRF Brasil Foods' local-currency issuer default rating also was affirmed at BBB-, foreign-currency issuer default rating at BBB-, long-term national scale rating at AA(bra), $750 million 5 7/8% senior notes due 2022 at BBB-, $750 million 7¼% senior notes due in January 28, 2020 issued by BFF International Ltd. and guaranteed by Brasil Foods and Sadia at BBB- and $250 million 6 7/8% bonds due in May 24, 2017 issued by Sadia Overseas Ltd. and guaranteed by Brasil Foods at BBB-.

Fitch also affirmed Marfrig Alimentos SA's local-currency issuer default rating at B+, foreign-currency issuer default rating at B+, national scale rating at BBB+(bra), R$300 million third debentures issue (1st tranche) at BBB+(bra) and R$300million third debentures issue (2nd tranche) at BBB+(bra).

Also affirmed includes Marfrig Overseas Ltd.'s foreign-currency issuer default rating at B+, $375 million senior unsecured notes due 2016 at B+ with a recovery rating of RR4 and $500 million senior unsecured notes due 2020 at B+ with a recovery rating of RR4.

Marfrig Holdings (Europe) BV's foreign-currency issuer default rating also was affirmed at B+ and $750 million senior unsecured notes due 2018 at B+ with a recovery rating of RR4.

The agency also said it affirmed Minerva SA's local-currency issuer default rating at B+, foreign-currency issuer default rating at B+, national scale rating at BBB(bra) and R$200 million outstanding debentures due 2015 at BBB(bra).

The outlook on Minerva remains stable.

Also affirmed includes Minerva Luxembourg's local-currency issuer default rating at B+, foreign-currency issuer default rating at B+ and senior unsecured notes due in 2017, 2019 and 2022 at B+ with a recovery rating of RR4.

A ratings review was prompted by the recent sharp increase in the international corn and soybean prices due to the severe drought in the United States, which damaged the crop and lowered crop-yield expectations precipitously, Fitch said.

Grain price fluctuations are part of the normal course of business for the protein producers, the agency said.

In the long run, the cost increases are passed through to the end consumer, sales volumes adjust and the protein producers' profitability returns to a normal level, Fitch said.

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