Moody's ups Brasil Foods

Moody's Investors Service said it upgraded Brasil Foods SA's senior unsecured debt ratings to Baa3.

At the same time, Moody's withdrew the company's Ba1 corporate family rating.

The outlook is stable.

Moody's said the upgrade to investment grade reflects Brasil Foods' good business profile, solid financial position and leadership both in relevant processed food categories and in global poultry exports.

"In our view, the company's value added portfolio and strong brands bring margin stability and makes the company more resilient to commodity price volatility," Moody's local market analyst Marianna Waltz said in a news release.

As a result, in contrast to the overall protein industry, the company was much less affected by the challenging competitive environment over the last year, the agency said.

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