SAO PAULO (Standard&Poor's) Sept. 5, 2012--Standard&Poor's Ratings Services said today that its ratings on Brazil-based beef producer Minerva S.A. (B+/Stable/--) are not affected following the company's announcement of the agreement for the acquisition of Paraguay-based Frigomerc S.A. (not rated) for $35 million. In our view, the company has room to fund this acquisition without compromising its "adequate" liquidity, given its large cash balances and long-term debt maturity profile. Furthermore, the company plans to partly finance the purchase of Frigomerc through equity. Additionally, we believe that the acquisition can bring greater operating efficiency to Minerva's operations in Paraguay, which its subsidiary, Friasa S.A. (not rated), is running. Operating efficiency at its Paraguayan operations can improve through potential
