Moody’s rates Marfrig notes B2

Moody's Investors Service said it assigned a B2 foreign currency rating the proposed $600 million senior unsecured notes due 2022 to be issued by Marfrig Holdings (Europe) BV and irrevocably and unconditionally guaranteed by Marfrig Global Foods SA and by Marfrig Overseas Ltd.

The outlook is stable.

The deal is part of Marfrig's liability management strategy and net proceeds from the issuance will be mainly used to tender part of the company's outstanding notes due 2020.

Moody’s said the B2 ratings are supported by Marfrig's diversified portfolio of animal proteins, as well as large geographic footprint and global distribution capabilities. The company's diversity in terms of raw material sourcing reduces risks related to weather and animal diseases, while its large product portfolio helps to mitigate the volatility inherent to commodity cycles and supply-demand conditions for each specific protein.

In addition, the agency views Bndes' (Brazilian National Development Bank) support to the company and its improved liquidity and debt profile following the divestiture of Seara and proactive liability management initiatives as credit positives.

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