Moody's rates JBS notes B1

Moody's Investors Service said it assigned a B1 corporate family rating to JBS SA (Grupo Friboi) and a B1 foreign currency rating to its proposed $150 million senior unsecured Euro notes jointly and unconditionally guaranteed by Friboi Ltda., Agropecuaria Friboi Ltda., J&F Participacões Ltda. and JBS Agropecuaria Ltda.

The outlook is stable.

Proceeds of the proposed notes will be used to repay a portion of existing debt, for capital expenditures and for general corporate purposes.

Moody's said the ratings reflect the group's standing as the largest beef exporter in Brazil and fourth-largest beef processor in the world.

The ratings also reflect the risks posed by animal disease issues, the pricing volatility inherent in a commodity business and the negative free cash flow generation due to the group's growth strategy, the agency said.

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