Diversified portfolio of several proteins and branded products. Global presence and strong market shares in domestic markets. Economies of scale and competitive cost structure. Stronger relationship with final clients through Keystone. Highly leveraged capital structure. Historical aggressive, acquisitive growth strategy. Exposure to volatile cattle and grain prices, and global demand. Integration risks to consolidate sizable assets acquired. Standard&Poor's Ratings Services' ratings on Brazil-based food producer Marfrig Alimentos S.A. (Marfrig) reflects the company's highly leveraged financial profile, which is a result of several acquisitions in the past few years, as well as potential margin volatility because of the exposure to global commodity prices, and still-limited benefits from its stronger business portfolio. We believe Marfrig has limited capacity to reduce
