Standard&Poor's Ratings Services' ratings on Brazil-based food producer Marfrig Alimentos S.A. (Marfrig) reflects the company's "highly leveraged" financial risk profile resulting from its aggressive acquisitive growth strategy, the majority of it funded with debt, its sizable annual debt amortization and interest payments, working-capital intensive business, and the exposure to volatile global commodity prices and demand. However, we view as positive the company's geographically diversified business portfolio, which consists of branded and commodity-oriented products and sundry proteins. This diversification has mitigated the volatility intrinsic to the commodity-oriented business. Marfrig's European-based Moy Park processed food business remained fairly resilient despite weak economy in the eurozone. Operating margins at the company's Brazilian poultry unit weakened as a result of high global
