Moody's rates Quickfood notes Baa3

Moody's Latin America said it assigned a corporate family rating of Caa2 on the global scale and B2.ar on the Argentinean national scale to Quickfood SA and a Baa3 global scale rating and an Aaa.ar Argentinean national scale rating to the company's up to ARS 150 million of local notes fully guaranteed by BRF Brasil Foods.

The outlook is stable for the notes and negative for the corporate family rating.

The proceeds of the notes will be used to prepay short-term debt.

The agency said the Baa3 rating for the notes mirrors the ratings of BRF.

The Caa2/B2.ar standalone ratings reflect Quickfood's position as one of the main meat processor companies in Argentina, supported by the quality of its products and its well-recognized brand, and the potential benefits derived from BRF's 90% ownership in the company, Moody's said.

The standalone ratings are constrained, however, by Quickfood's historical weak credit and financial profiles, the company's modest scale and its concentration in Argentina, with a consequent strong correlation with the country's macroeconomic environment, Moody's said.

The stable outlook for the notes reflects the outlook of BRF, and the agency said the negative outlook for the corporate family rating is in line with Moody's negative outlook for the Argentine government's B3 rating.

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