Brazil-based beef producer Minerva has been expanding its operations both internally and through small acquisitions, and improving its cash flow generation. We are assigning our 'BB-' global scale issue-level rating to subsidiary Minerva Luxembourg's proposed perpetual notes. We are also raising our national scale corporate credit rating on Minerva to 'brA' from 'brA-' and affirming our 'BB-' corporate credit and debt ratings. The stable outlook reflects our expectation that Minerva will improve the operating efficiency of the recently announced acquisitions, increasing its cash flow generation and allowing it to gradually deleverage. On March 21, 2014, Standard&Poor's Ratings Services assigned its 'BB-' issue-level rating to Minerva Luxembourg S.A.'s proposed $300 million perpetual notes, which Minerva S.A. (Minerva) will guarantee.
