Our ratings on Brazil-based beef producer Minerva S.A. reflect our assessment of its "weak" business risk profile, "aggressive" financial risk profile, and "adequate" liquidity. Minerva's "weak" business risk profile reflects its lower scale and diversification compared with its peers' and its highly commoditized portfolio of products, focused on fresh meat sales. We view the beef industry as highly competitive and volatile, exposed to price swings both in cattle sourcing and sales as well as to uncontrollable risk factors, such as world trade policies and animal disease outbreaks. Demand and prices are also influenced by global supply and demand imbalances. Furthermore, the industry players are subject to significant working capital needs, which can hamper operating cash flow generation. The positive rating
