S&P: Independência view stable

Standard & Poor's said it revised the outlook on Independencia SA to stable from positive and affirmed the B corporate credit rating.

S&P said the outlook revision reflects the effects of tighter domestic credit markets, higher interest and funding costs, and substantial currency volatility because of the worsening global economy on Independência's credit risk.

The rating reflects the company's highly leveraged financial profile, intrinsic exposure to the volatile and competitive global fresh meat industry, dependence on a commoditized product portfolio with concentration in fresh beef products and significant cost pressures from high cattle costs, the agency said.

These risks are partially offset by Independência's above-average profitability from operating efficiency, its decline in leverage and its increasing geographic diversity after acquiring Goiás Carne and renting several production units, the agency noted.

The issuer has a total debt-to-EBITDA ratio of 5.7x for the 12 months ended June 30.

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