Standard&Poor's Rating Services' ratings on Industria e Comercio de Carnes Minerva Ltda. (Minerva) reflect the company's operations in the volatile and highly competitive global meat industry; potential trade restrictions and sanitary risks, which could have a significant effect on the company's operations because of the geographic concentration of its plants; and Minerva's highly leveraged capital structure and weak cash flow generation. These negative factors are partly offset by Minerva's low-cost position, compared with other Brazilian meat producers. Minerva also benefits from a relatively fixed and diversified international client base because the company specializes in exports of niche products with some cut differentiation. The company's business strategy focuses on selling fresh meat on a made-to-order basis. To benefit from
