S&P upgrades JBS to BB+/brAA+

Standard & Poor's said it raised its global scale corporate credit and issue-level ratings on JBS SA and its subsidiary, JBS USA, to BB+ from BB.

At the same time, the agency raised its national scale rating to brAA+ from brAA.

The outlooks remain positive.

S&P said the upgrades reflect JBS' stronger EBITDA margins and cash flow generation, which resulted in significant debt reduction in the past few quarters despite acquisitions of Primo Smallgoods, Tyson Foods Inc.'s Mexican poultry business (still pending), and Grupo Big Frango, all of which totaled about R$5 billion. The credit metrics would have been even stronger if JBS didn't pay the special dividend of R$1.1 billion in first quarter 2015, which the company funded with cash reserves at its subsidiary, Pilgrim's Pride Corp.

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