S&P rates Independência, notes B

Standard & Poor's said it assigned its B long-term corporate credit rating to Independência Alimentos Ltda.

At the same time, the agency said it assigned its B issue credit rating to the proposed $150 million notes with target maturity in 2014 offered by Independencia International Ltd., a wholly owned subsidiary of Independencia, based in the Cayman Islands.

The outlook on the corporate credit rating is stable.

S&P noted that the ratings on Independência reflect its exposure to the volatile and highly competitive global fresh meat industry, the company's high dependence on commodity-type products and relatively limited geographic diversification of production, both representing a relevant exposure to sanitary and trade barriers and a highly leveraged capital structure.

These negative factors are partly compensated by Independência's low cost position, resulting in good profitability levels, some product diversification that provide for competitive advantages both in the local and international markets and the company's diversified customer base, the agency added.

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