Research Update: Minerva S.A. Upgraded To 'BB' From 'BB-' On Substantial Deleveraging And Strong Liquidity, Outlook Stable

Brazil-based protein producer Minerva S.A. has posted strong performance in the first half of 2020, enjoying robust export prices and volumes that should boost EBITDA above our expectations for 2020. We expect Minerva to use cash inflows to prepay debt, improving its capital structure and lowering interest burden. On Oct. 15, 2020, S&P Global Ratings raised the ratings on Minerva to 'BB' from 'BB-' on the global scale and to 'brAAA' from 'brAA+' on the national scale. We're also raising our issue-level rating on the company's unsecured debt to 'BB' from 'BB-' and keeping our recovery rating of '4' (40%) unchanged. The stable outlook reflects our expectation that the company will continue to deleverage by maintaining debt to EBITDA comfortably

...- Brazil-based protein producer Minerva S.A. has posted strong performance in the first half of 2020, enjoying robust export prices and volumes that should boost EBITDA above our expectations for 2020. - We expect Minerva to use cash inflows to prepay debt, improving its capital structure and lowering interest burden. - On Oct. 15, 2020, S&P Global Ratings raised the ratings on Minerva to '##' from '##-' on the global scale and to 'brAAA' from 'brAA+' on the national scale. - We're also raising our issue-level rating on the company's unsecured debt to '##' from '##-' and keeping our recovery rating of '4' (40%) unchanged. - The stable outlook reflects our expectation that the company will continue to deleverage by maintaining debt to EBITDA comfortably below 3x even amid the industry downturns....

Research Update