S&P gives JBS notes B+

Standard & Poor's said it assigned its B+ senior unsecured debt rating to the proposed $200 million senior unsecured notes due 2016 of JBS SA (B+/stable).

The agency said that proceeds of the notes will be used to refinance short-term maturities, fund capital expenditures and for other corporate uses.

Taking into account the new notes, S&P said it expects JBS to report a funds from operations-to-total debt ratio in the 10%-15% range by year-end 2006 and total debt to EBITDA of about 5.0 times, adding that these ratios are relatively weak for the current rating and are expected to improve as the company gradually applies its excess cash position in the repayment of forthcoming debt maturities.

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