Standard&Poor's Ratings Services' ratings on Minerva S.A. reflect its leveraged financial profile and still significant interest burden, which, despite efforts to reduce interest costs, will likely keep free operating cash flow negative. They incorporate Minerva's dependence on the successful ramp-up of expansions and greenfield projects, including Minerva Dawn Farms (MDF), to keep increasing its cash flows. We also factor in the company's exposure to the highly competitive global beef industry and volatile cattle prices, highly leveraged financial profile, and still weak, though improving, credit metrics. An increasingly geographically diverse asset base, high plant utilization, and debt structure improvements following Minerva's exchange offer partially mitigate these risks. Stronger local and export demand for beef, a higher expected contribution from
