S&P raises Marfrig

S&P said it raised its global scale and national ratings on Marfrig Global Foods SA to BB from BB- and brAAA from brAA+, respectively. The agency also affirmed the 3 recovery rating on Marfrig’s notes.

“In the U.S., high beef demand is driving price hikes that far outpace the recent cattle price increases in the country, because there's high cattle availability in U.S. Cutout ratios are at record-high levels, but we expect them to gradually decrease in 2022 to reach margins at about 7%-8% in the following year at U.S. subsidiary National Beef– still above the industry's historical average (about 5%),” S&P said in a press release.

The outlook is stable.

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