Bulletin: Minerva S.A. Ratings Unaffected On Planned Acquisition Of Frisa Frigorificos Rio Doce S.A.

SAO PAULO (S&P Global Ratings) Nov. 7, 2016-- S&P Global Ratings said today that its ratings and outlook on Minerva S.A. (global scale: BB-/Positive/--; national scale: brA+/Positive/--) are not affected following the announcement to acquire Brazil-based cattle slaughtering company, Frisa Frigoríficos Rio Doce S.A. (not rated), for around R$205 million and working capital of R$45 million. Minerva continues to hold a strong cash position (R$2.8 billion as of June 30, 2016), which was reinforced by its recent bond issuance, proceeds from which the company is likely to use to keep extending its debt maturities and lowering its funding costs. In addition, Minerva will pay the acquisition amount in several annual instalments. The company shouldn't deviate from our expectation of a

...SAO PAULO (S&P Global Ratings) Nov. 7, 2016-- S&P Global Ratings said today that its ratings and outlook on Minerva S.A. (global scale: ##-/Positive/--; national scale: brA+/Positive/--) are not affected following the announcement to acquire Brazil-based cattle slaughtering company, Frisa Frigorfficos Rio Doce S.A. (not rated), for around R$205 million and working capital of R$45 million. Minerva continues to hold a strong cash position (R$2.8 billion as of June 30, 2016), which was reinforced by its recent bond issuance, proceeds from which the company is likely to use to keep extending its debt maturities and lowering its funding costs. In addition, Minerva will pay the acquisition amount in several annual instalments. The company shouldn't deviate from our expectation of a gradual deleveraging, while using its free operating cash flow in excess of R$200 million in 2016 to reduce its debt. Only a rating committee may determine a rating action and this report does not constitute a rating...

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