Fitch rates Pilgrim's Pride loan BBB-

Fitch Ratings said it affirmed Pilgrim's Pride Corp.'s long-term issuer default rating and senior unsecured notes at BB.

Fitch also said it assigned a first-term time rating of BBB- to Pilgrim's term loan and revolving credit facilities. The secured loan is rated two notches higher than the issuer default rating due to its outstanding recovery prospects.

The ratings are supported by the company's strong business profile as one of the largest chicken processors in the world with a presence in the United States, Europe and Mexico, the agency said.

Pilgrim's larger scale provides the company with cost advantages compared to its smaller competitors, Fitch said.

The company also benefits from sound operating earnings due to its diversified product portfolio, strong distribution and vertically integrated operations, the agency said.

The ratings are tempered by the rating of Pilgrim's parent company JBS, Fitch said, along with a track record of acquisitions financed by debt.

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