S&P affirms JBS

Standard & Poor's said it affirmed its B+ long-term corporate credit rating on JBS SA (JBS) and removed the ratings from CreditWatch with negative implications where they were placed May 29.

The outlook is negative.

The outlook is negative.

The rating action reflects the pro-forma combined capital structure of JBS after the completion of the Swift acquisition on July 11, with equity inflows of $950 million and $600 million of debt reduction at the Swift level, the agency said.

The agency added that the improved capital structure partially offsets its view that JBS will face some challenges to turn around Swift's operations, noting that these challenges include low margins and very weak performance of the past several years, mad cow disease in the United States, industry overcapacity, the highly competitive operating environment and the inherent differences of the U.S. market.

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