Fitch rates Vanguarda notes B-

Fitch Ratings said it assigned the following initial ratings to Vanguarda do Brasil SA a local-currency issuer default rating of B-, foreign-currency issuer default rating of B-, national scale rating of BB(bra) and an expected rating of B-/RR4 rating to its proposed $200 million issuance. Vanguarda do Brasil is a subsidiary of Vanguarda Participacoes SA.

The outlook is stable.

The ratings are supported by the company's leading position in the production of soybean and cotton in Brazil, Fitch said, and its vertical integration into animal proteins.

Balanced against these credit strengths are high leverage and weak liquidity, as well as the company's exposure to volatile commodity prices and working capital requirements, the agency said.

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