Diversified business portfolio by geography and proteins; Economies of scale with strong market position; and Positive growth fundamentals. Sizable gross debt and highly leveraged capital structure; Aggressive acquisitive strategy, mainly debt financed; Working capital intensive business exposed to commodity prices and global demand; and Tight incurrence covenant cushion. Standard&Poor's Ratings Services' ratings on Brazil-based food producer Marfrig Alimentos S.A. (Marfrig) reflects the company's highly leveraged financial profile, aggressive acquisitive growth strategy, its exposure to volatile global commodity prices and demand, and sizable annual debt amortizations, limiting its ability to reduce leverage. Partly offsetting the risks is the company's diversified business portfolio geographically, into branded and commodity oriented products and into sundry proteins, its efficient distribution network and strong
