On March 9, 2009, Standard&Poor's Ratings Services placed its 'B' corporate credit rating on Brazil-based beef producer Minerva S.A. on CreditWatch with negative implications. The CreditWatch placement reflects the recent deterioration of market and credit conditions in the Brazilian beef industry. Minerva reported total debt of $596.3 million as of Sept. 30, 2008. Brazilian beef producers are facing severe operational pressures: longer receivable terms in export markets; fiercer competition in the domestic market; low operating profitability and negative operating cash flows, due to high cattle costs and difficult cattle sourcing; and tight bank credit availability to Brazilian beef companies, particularly so after a series of recent defaults in the industry. In this challenging environment, Minerva is particularly exposed
