Low-cost position, in line with other Brazilian meat producers Relatively diversified business profile with off-shore revenues representing about 40% of total revenues Stronger focus on premium cuts and niche products Volatile operating environment Aggressive growth strategy involving investments in capacity and acquisitions Weaker operating performance and cash-flow generation than that of peers Highly leveraged capital structure Standard&Poor's Ratings Services' rating assigned to Marfrig Frigoríficos e Comércio de Alimentos S.A. (Marfrig) reflects the company's lower-than-expected cash-flow generation, leading to weak credit metrics for the rating category, associated with the company's aggressive growth strategy in 2007 and beyond. In our opinion, the company will report negative discretionary cash flow in the future, limiting the potential improvement to its financial profile.
