Standard&Poor's Rating Services' ratings on Marfrig Frigorificos e Comercio de Alimentos Ltda. (Marfrig) reflect the company's operations in the volatile and highly competitive global meat industry. Among the factors affecting the ratings are: the potential trade restrictions and sanitary risks; the company's aggressive growth strategy, which encompasses acquisitions and capacity expansion both in Brazil and in other South American countries; and a projected, highly leveraged capital structure, considering its recently placed $375 million bonds due in 2016. These negative factors are tempered by Marfrig's low-cost position in the global meat industry. In line with other Brazilian producers, Marfrig's successful performance in specialty beef cuts is reflected by some level of brand awareness, a good relationship with restaurants and
