Fitch rates Rodopa notes B-

Fitch Ratings said it assigned B- foreign- and local-currency issuer default ratings and BBB-(bra) national scale rating to Rodopa Industria e Comercio de Alimentos Ltda.

Fitch also said it assigned a B- with a recovery rating of RR4 rating to the proposed senior unsecured notes due in 2017 to be issued by Rodopa Finance SA, a wholly owned subsidiary of Rodopa.

The notes will be jointly and severally guaranteed by Rodopa and its direct shareholder Forte Empreendimentos e Participacoes Ltda.

The proceeds will be used by Rodopa to repay its short-term debt, to finance part of its projected capital expenditures and for general corporate purposes.

Fitch also said it assigned a B- local-currency and foreign-currency issuer default rating to Rodopa Finance.

The ratings of Rodopa Finance have been linked to that of Rodopa in accordance with the parent-subsidiary rating methodology, the agency said.

The outlook is stable.

The ratings reflect Rodopa's small revenue base, its low and volatile operational margins and weak cash flow generation as a result of the high working capital requirements inherent to the protein industry in Brazil, Fitch said.

The ratings also consider its small size and low operational diversification within the competitive Brazilian beef sector, the agency said.

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