Moody's rates Independência notes Caa1

Moody's Investors Service said it assigned a provisional Caa3 local-currency corporate family rating to Independência Alimentos SA and a Caa1 foreign-currency rating to its proposed guaranteed $150 million senior secured notes maturing in 2015.

The outlook is stable.

Proceeds will be used to fund working capital and general corporate purposes, and for payment to suppliers.

"Independencia's Caa3 CFR rating is largely based on the company's perceived challenges to operate post bankruptcy at a very high starting leverage, as measured by total debt to EBITDA, of over 28 times by the end of 2010," Moody's senior analyst Soummo Mukherjee said in a statement.

The Caa3 rating also considers the company's very tight headroom under its financial maintenance covenants, the analyst noted.

The rating also incorporates the company's smaller size and less diversified product portfolio, the agency said.

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