Minerva S.A.'s Proposed Senior Unsecured Debentures Of Up To R$400 Million Rated 'brAAA' (Recovery Rating: '4')

SAO PAULO (S&P Global Ratings) Sept. 23, 2021--S&P Global Ratings assigned its 'brAAA' national scale issue-level rating to Minerva S.A.'s (global scale: BB/Stable/--; national scale: brAAA/Stable/--) proposed 11th senior unsecured debentures issuance of up to R$400 million and with a tenor of five years. We also assigned the recovery rating of '4' to the proposed debentures, which indicates an average recovery expectation of 40%. Minerva's largest subsidiary, Athena Foods S.A. (not rated), which represents about 45% of revenues, doesn't guarantee the debt. However, we don't see any structural subordination because Athena has no debt, so all its cash is available to meet debt payments at the parent level. The company will use the proceeds primarily for debt refinancing, extending its

...September 23, 2021 SAO PAULO (S&P Global Ratings) Sept. 23, 2021--S&P Global Ratings assigned its 'brAAA' national scale issue-level rating to Minerva S.A.'s (global scale: ##/Stable/--; national scale: brAAA/Stable/--) proposed 11th senior unsecured debentures issuance of up to R$400 million and with a tenor of five years. We also assigned the recovery rating of '4' to the proposed debentures, which indicates an average recovery expectation of 40%. Minerva's largest subsidiary, Athena Foods S.A. (not rated), which represents about 45% of revenues, doesn't guarantee the debt. However, we don't see any structural subordination because Athena has no debt, so all its cash is available to meet debt payments at the parent level. The company will use the proceeds primarily for debt refinancing, extending its debt maturity profile and strengthening cash position to deal with high working capital requirements to purchase cattle and for meat exports. Therefore, the issuance doesn't significantly...

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