Tear Sheet: Marfrig Global Food S.A.'s Asset Sales Will Help Lower Leverage

With that, Marfrig will raise Brazilian real (R$) 7.5 billion, R$1.5 billion of which it received on Aug. 28, 2023. The R$6 billion remaining will be paid upon the conclusion of the transaction, which is expected to be in the next six to 12 months, subject to antitrust approvals. We estimate about R$1.5 billion-R$1.6 billion of EBITDA will be transferred to Minerva, which is 25% of our expected EBITDA for Marfrig in 2023. At the same time, the R$7.5 billion cash inflow will represent about 110%-120% of our projected EBITDA for 2024, which will lower Marfrig?s debt to EBITDA to about 4.3x-4.5x in 2024 (including the proportional consolidation of BRF S.A.) and to around 3.6x-3.8x in 2025, which would be

...Foreign currency issuer credit rating ##+/Stable/-- Local currency issuer credit rating ##+/Stable/-- Business risk Fair Country risk Low Industry risk Intermediate Competitive position Fair Financial risk Significant Cash flow/leverage Significant Anchor ## Diversification/portfolio effect Neutral (no impact) Capital structure Neutral (no impact) Financial policy Neutral (no impact) Liquidity Strong (no impact) Management and governance Fair (no impact) Comparable rating analysis Positive (+1 notch) Stand-alone credit profile ##+...

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