Research Update: Minerva Outlook Revised To Positive From Stable On Announced Primary Offering; 'BB-' And 'brAA+' Ratings Affirmed

On Jan. 15, 2020, Brazil-based protein processor Minerva S.A. announced the launch of an equity public offering to be concluded in the next few weeks. The primary equity offering could reach about R$1.1 billion. We expect Minerva to use the cash inflow to reduce debt, which, along with the favorable beef export scenario, should allow it to pay about R$1.5 billion in liabilities over the next 12 months, which will lower its interest burden. On Jan. 17, 2020, S&P Global Ratings revised the global and national scale outlook on Minerva to positive from stable. The positive outlook reflects that we could raise the ratings in the next 12 months if the company maintains a debt to EBITDA consistently below 3.0x

...- On Jan. 15, 2020, Brazil-based protein processor Minerva S.A. announced the launch of an equity public offering to be concluded in the next few weeks. The primary equity offering could reach about R$1.1 billion. - We expect Minerva to use the cash inflow to reduce debt, which, along with the favorable beef export scenario, should allow it to pay about R$1.5 billion in liabilities over the next 12 months, which will lower its interest burden. - On Jan. 17, 2020, S&P Global Ratings revised the global and national scale outlook on Minerva to positive from stable. The positive outlook reflects that we could raise the ratings in the next 12 months if the company maintains a debt to EBITDA consistently below 3.0x while funds from operations (FFO) to debt approaches 20%, which we expect to happen by the end of 2020. - We also affirmed our '##-' global scale and 'brAA+' national scale issuer credit ratings on the company....

Research Update