Moody's: Marfrig outlook stable

Moody's Investors Service said it changed the outlook for Marfrig Alimentos SA to stable from negative based on the company's progress in integrating its recently acquired assets, as demonstrated by improved operating margins and positive cash flow from operations for the last 12 months ending on Sept. 30.

"The stabilization of Marfrig's rating outlook also reflects the company's ability to successfully raise approximately R$1.5 billion in net proceeds through a public equity offer to fund the Seara acquisition," Moody's vice president Soummo Mukherjee said in a statement.

Marfrig's B1 rating reflects the company's increasingly diversified portfolio of products, its growing portfolio of brands, its geographic footprint and competitive cost structure, the agency said.

The rating also incorporates Marfrig's currently weak cash flow from operations, relatively high leverage and the challenges in successfully integrating the company's significant number of sizeable acquisitions, the agency noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.