S&P affirms Imcopa

Standard & Poor's said it affirmed the B corporate credit rating on Imcopa Importação, Exportação e Indústria de Óleos SA and removed ratings from CreditWatch, where they were placed with negative implications on May 6.

The agency also affirmed the B rating on senior unsecured notes of subsidiary Imcopa International SA.

The outlook is negative.

S&P said the affirmation follows a review of expected business and financial performance expected for Imcopa over the medium term.

The negative outlook reflects concerns about Imcopa's significant short- and medium-term debt maturities, a risk that is partially mitigated by the company's high and liquid inventories and credit availability under standby bank facilities, the agency noted.

Ratings reflect the high volatility in the soft commodity businesses, highly leveraged financial profile and large working capital requirements associated with the soybean business cycle, the agency said.

These negative factors are partially offset by Imcopa's strategy of focusing on non-GMO soybean oil and soybean meal products, which usually command a premium, S&P noted.

The issuer's adjusted total debt-to-EBITDA ratio is 4.8x.

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