Bulletin: Credit Implications Of Marfrig Global Foods' Purchase Of BRF S.A.'s Shares Will Depend On Future Strategy - S&P Global Ratings’ Credit Research

Bulletin: Credit Implications Of Marfrig Global Foods' Purchase Of BRF S.A.'s Shares Will Depend On Future Strategy

Bulletin: Credit Implications Of Marfrig Global Foods' Purchase Of BRF S.A.'s Shares Will Depend On Future Strategy - S&P Global Ratings’ Credit Research
Bulletin: Credit Implications Of Marfrig Global Foods' Purchase Of BRF S.A.'s Shares Will Depend On Future Strategy
Published May 24, 2021
3 pages (1357 words) — Published May 24, 2021
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Abstract:

SAO PAULO (S&P Global Ratings) May 24, 2021--S&P Global Ratings said today that the announcement that Marfrig Global Foods S.A. (BB-/Positive/--) acquired 24% of BRF S.A. (BB-/Positive/--) doesn't have an immediate credit effect on either company. We believe that Marfrig has sufficient headroom on its balance sheet to absorb the almost R$4.5 billion in cash outflows for the transaction. This is because, as of March 31, the company had a cash position of R$11 billion, short-term debt of R$7.4 billion, while expecting to generate cash FFO of more than R$5 billion for 2021. Although Marfrig's liquidity will tighten, the company still will benefit from the likely strong cash generation at its U.S. beef division. This is because the latter will

  
Report Type:

Bulletin

Ticker
MRFG3@BZ
Issuer
Marfrig Global Foods S.A.
GICS
Packaged Foods & Meats (30202030)
Sector
Global Issuers, Structured Finance
Country
Brazil
Region
Latin America
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Bulletin: Credit Implications Of Marfrig Global Foods' Purchase Of BRF S.A.'s Shares Will Depend On Future Strategy" May 24, 2021. Alacra Store. May 17, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Credit-Implications-Of-Marfrig-Global-Foods-Purchase-Of-BRF-S-A-s-Shares-Will-Depend-On-Future-Strategy-2653500>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: Credit Implications Of Marfrig Global Foods' Purchase Of BRF S.A.'s Shares Will Depend On Future Strategy May 24, 2021. New York, NY: Alacra Store. Retrieved May 17, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Credit-Implications-Of-Marfrig-Global-Foods-Purchase-Of-BRF-S-A-s-Shares-Will-Depend-On-Future-Strategy-2653500>
  
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