Position as the second-largest Brazilian beef and poultry producer; Diversified portfolio of products and clients; Strong brand recognition in the domestic market; and Low-cost production, and economies of scale. High concentration in volatile, commodity-type products in export markets; Exposure to potential sanitary barriers and animal disease outbreaks; Integration risks; and High dependence on raw material sourcing. The 'B+' corporate credit rating on meat processor Marfrig Alimentos S.A. reflects the volatile demand in the commodity-oriented fresh meat export market, the risks inherent in the meat industry, and the industry's high dependence on raw material sourcing. Moreover, Standard&Poor's Ratings Services sees Marfrig's aggressive acquisitive strategy, leveraged capital structure, and the integration risks associated with its now substantial poultry operations as
