S&P rates Vanguarda notes B-

Standard & Poor's said it assigned a B- corporate credit rating to Vanguarda Participacoes SA, along with a B- rating to the senior notes due 2015 to be issued by Vanguarda do Brasil SA, a wholly owned subsidiary of Vanguarda.

The outlook is stable.

The ratings reflect the company's aggressive financial profile, which arises from its weak liquidity and corporate governance issues, S&P said. It also considers its relative weak cash flow and significant refinancing needs, the agency added.

These risks are partly mitigated by its operating vertical integration, experienced management team, some product differentiation and stable profitability, S&P said.

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