S&P rates BFF bonds BB+

Standard & Poor's said it assigned a BB+ rating to the $500 million of 10-year senior unsecured unsubordinated bonds issued by BFF International Ltd. (not rated).

The bond rating reflects the corporate credit quality of parent company BRF Brasil Foods SA (BB+/stable) and its wholly owned subsidiary Sadia SA (BB+/stable), both of which guarantee the bonds unconditionally and irrevocably.

The bond issuance is part of BRF's liability management strategy for strengthening its financial profile, aiming to replace short-term debt with longer term, lower-interest-rate funding, according to the agency.

Ratings reflect the company's exposure to the volatile meat export market, the risks inherent in the animal protein industry and integration risk for Sadia's and BRF's operations, the agency said.

The company's fair business profile partially mitigates these risks, the agency noted.

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