Marfrig Holdings Europe B.V.'s Proposed $600 Million Senior Unsecured Notes Rated 'B+'

SAO PAULO (Standard&Poor's) Nov. 18, 2014--Standard&Poor's Ratings Services assigned today its 'B+' issue-level rating to Marfrig Holdings Europe B.V.'s proposed $600 million senior unsecured notes due 2022. The rating reflects the credit quality of Brazil-based protein producer, Marfrig Global Foods S.A. (Marfrig; B+/Stable/--), which together with its subsidiary, Marfrig Overseas Ltd., will irrevocably and unconditionally guarantee the new notes. We analyze Marfrig and its Latin American, European, Asian, and U.S. subsidiaries on a consolidated basis. We understand that all cash flow generation is available to pay the group's debt, although the bulk of EBITDA, cash, and debt remain at Marfrig's level. The company will mainly use proceeds of the new issuance to repurchase its outstanding 2020

...SAO PAULO (Standard & Poor's) Nov. 18, 2014--Standard & Poor's Ratings Services assigned today its 'B+' issue-level rating to Marfrig Holdings Europe B.V.'s proposed $600 million senior unsecured notes due 2022. The rating reflects the credit quality of Brazil-based protein producer, Marfrig Global Foods S.A. (Marfrig; B+/Stable/--), which together with its subsidiary, Marfrig Overseas Ltd., will irrevocably and unconditionally guarantee the new notes. We analyze Marfrig and its Latin American, European, Asian, and U.S. subsidiaries on a consolidated basis. We understand that all cash flow generation is available to pay the group's debt, although the bulk of EBITDA, cash, and debt remain at Marfrig's level. The company will mainly use proceeds of the new issuance to repurchase its outstanding 2020 bond. This action is in line with our expectations that the company will continue improving its capital structure through refinancing its debt, reducing the cost of it, and improving liquidity....

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