S&P revises Minerva view to positive

S&P said it revised the global and national scale outlook on Minerva SA to positive from stable following the announcement the company’s plan to raise about R$1.1 billion from a primary equity offering.

Proceeds are expected to be used to repay debt. S&P said along with the profits from a favorable export market for beef, Minerva should be able to cut its debt burden by R$1.5 billion in the next 12 months.

“Minerva expects to raise more than R$1 billion on its primary offering in the next couple of weeks, which could result in it reaching our upgrade triggers faster than expected, likely closing 2020 with debt to EBITDA between 2.5x-2.7x and FFO to debt near 20% amid rising free operating cash flow (FOCF), which could prompt an upgrade in the next 12 months,” said S&P in a press release.

S&P also affirmed its BB- global scale and brAA+ national scale issuer credit ratings on the company.

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