Improving operating performance; Adequate liquidity; and Favorable market conditions for fresh beef in Brazil. Highly leveraged capital structure; Weak, though improving, cash generation; and Exposure to the volatile and competitive beef industry. Standard&Poor's Ratings Services' ratings on Brazil-based meat producer Minerva S.A. reflect our opinion of the company's highly leveraged financial profile and weak business profile. High debt has resulted from greenfield projects and higher working capital to fund the ramp-up of production. Minerva is also exposed to volatile results because of its exposure to the highly competitive meat industry. Partially offsetting these risks are expected favorable domestic conditions for fresh beef in the near term as prices to consumers rise, management's expertise and track record in managing
