S&P rates Marfrig notes B+

S&P said it assigned a B+ rating and recovery rating of 4 to MARB BondCo plc's proposed senior unsecured notes.

The 4 recovery rating indicates 30% to 50% expected default recovery.

The parent, Marfrig Global Foods SA, will fully and unconditionally guarantee the notes.

The proceeds will be used for debt refinancing and to fund the announced tender offers for any and all of Marfrig Holdings Europe BV's outstanding notes due 2018 and Marfrig Overseas Ltd.'s notes due 2020.

Any remaining cash proceeds will be used to repay more expensive debt and extend the company’s debt maturity profile, S&P said.

The issuance is not expected to affect Marfrig's leverage ratios, the agency added, and no significant changes in its capital structure are expected.

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