Fitch rates Arantes B

Fitch Ratings said it assigned foreign- and local-currency issuer default ratings of B to Arantes Alimentos Ltda. and a national debt rating at BBB(bra).

The outlook is stable.

Fitch said the ratings reflect Arantes' low cost structure and diversified export revenue base.

The ratings also reflect a beef processing business exposed to volatile beef and cattle markets, the agency said, with volatility driven by sanitary disease, weather conditions, economic conditions, beef consumption and competitive pressures.

Some of the risks are mitigated by Arantes' geographically diversified operational plants, global distribution and customer diversification, and a balanced export revenue base, Fitch said.

At Sept. 30, the company had a ratio of net debt-to-EBITDA of 4.5 times.

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