Fitch affirms Marfrig

Fitch Ratings said it affirmed Marfrig Global Foods SA's long-term foreign and local currency issuer default ratings at BB-, its national scale rating at A(bra) and Marfrig Holdings (Europe) and MARB BondCo plc's senior unsecured notes at BB-.

The agency said the action follows the announced sale of Keystone Foods to Tyson Foods (BBB/stable) for $2.4 billion.

The outlook is stable.

Fitch said it views the transaction as positive and expects it to strengthen Marfrig's credit profile within the BB- rating level at/or near to the positive rating triggers.

After the conclusion of the Keystone sale and the acquisition of National Beef, Marfrig's capital structure will improve by reducing debt, which is somewhat offset by a higher business risk profile related to Marfrig's focus on the commodity beef business, the agency said.

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