Brazil-based food producer Marfrig Alimentos has announced the sale of its Brazilian poultry division, Seara Alimentos S.A., for R$5.8 billion in the form of a debt transference to JBS S.A. We are affirming our 'B' global scale and 'brBBB-' national scale ratings and removing them from CreditWatch with positive implications. We are assigning our 'B' rating to the proposed bond issuance of up to $600 million due 2021. The positive outlook reflects a possible upgrade if Marfrig increases its free cash flow generation due to lower interest payments, working capital requirements, and capex, while its capital structure and liquidity improve on lower annual debt amortizations. On Sept. 3, 2013, Standard&Poor's Ratings Services affirmed its ratings on Marfrig Alimentos
