S&P affirms Marfrig

Standard & Poor's said it affirmed the B+ corporate credit rating on Marfrig Frigoríficos e Comércio de Alimentos SA and removed ratings from CreditWatch, where they were placed with negative implications on June 24.

The outlook is negative.

S&P said the affirmation reflects the advanced stage of Marfrig's funding strategy in its acquisition of OSI Group LLC's businesses in both Brazil and several European countries for $680 million.

Ratings reflect the company's highly leveraged financial profile, its aggressive growth strategy, its exposure to the volatile and competitive global meat industry and the significant pressure on feedstock prices in Brazil, the agency said.

These negative rating factors are partly offset by Marfrig's increasingly diversified business portfolio, its competitive cost position and its adequate liquidity, the agency noted.

The issuer has a total debt-to-EBITDA ratio of 5.3x.

© 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.