Fitch to rate Minerva note reopening BB-

Fitch Ratings said it expects to assign a BB- rating to Minerva SA's proposed $300 million notes reopening.

The reopening is part of Minerva Luxembourg's 2026 notes and will be unconditionally and irrevocably guaranteed by Minerva.

The company expect to use the proceeds to finance the recent acquisition of beef plants in Uruguay, Paraguay and Argentina by Minerva's subsidiaries.

Fitch said it expects Minerva's net debt/EBITDA ratio to be around 4 times to 4.3 times in 2017, compared to 3.5 times in 2016. The recent acquisition of the beef operations in South America from JBS will likely delay the pace of deleveraging, as initially expected by the agency, but does not fall outside of the metrics consistent with the current rating.

As of March 31, 2017, the company's total net debt/EBITDA remained at 3.8 times and was impacted by the appreciation of the average Brazilian currency year-over-year.

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