S&P rates Marfrig Overseas bonds B+

Standard & Poor's said it assigned a B+ rating to the senior unsecured, unsubordinated bonds to be issued by Marfrig Overseas Ltd. in the amount of $500 million with a tenor of 10 years.

The rating reflects the credit quality of Marfrig Alimentos SA, which will irrevocably and unconditionally guarantee the bonds.

The bond issuance is part of Marfrig's liability-management strategy for strengthening its financial profile by extending debt tenors and lowering its funding cost, S&P said.

The company is improving its business profile through acquisitions, with a more geographically diversified and consumer-branded product portfolio, the agency said.

The ratings also reflect the company's exposure to the volatile fresh-meat export market and risks inherent in the animal protein industry, S&P said.

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