Several acquisitions in the past few years improved Marfrig's business profile but resulted in a highly leveraged capital structure. We are affirming our 'B+' global scale ratings and our 'brBBB+' national scale rating on Marfrig. The stable outlook reflects our belief that the company is unlikely to deleverage in the short term. On Feb. 22, 2011, Standard&Poor's Ratings Services affirmed the 'B+' global scale and 'brBBB+' national scale ratings on Brazil-based food producer Marfrig Alimentos S.A. The outlook is stable. We believe Marfrig has limited capacity to reduce debt levels, even though recent acquisitions have improved the company's business profile. Marfrig's improved asset portfolio and geographic diversification should bring more stable cash flow generation, but the company's deleveraging
