Standard&Poor's Rating Services' ratings on Marfrig Frigorificos e Comércio de Alimentos S.A. (Marfrig) reflect the company's operations in the volatile and highly competitive global meat industry. Among the factors affecting the ratings are 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. 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 large food service companies, and significant geographic sales diversification. Although Marfrig
