Standard&Poor's Ratings Services' rating on Marfrig Frigoríficos e Comércio de Alimentos S.A. (Marfrig) reflects the company's exposure to the volatile and competitive global meat-packing industry, the company's highly leveraged financial profile, and the significant pressure on feedstock prices in Brazil. We also factored in our analysis the more challenging business environment to the beef industry in Brazil, with tighter credit markets and potentially weakening demand. Marfrig's increasingly diversified business portfolio and efficient distribution channels in both local and external markets and the company's competitive cost position among Brazilian beef producers partly offset the negative factors. Despite cattle cost pressures in Brazil, Marfrig managed to sustain relatively stable profitability in the past several quarters, thanks to its improved product
