Moody’s rates BRF notes Baa3

Moody’s Investors Service said it assigned a Baa3 foreign-currency rating to BRF SA’s proposed €500 million senior unsecured notes due 2022.

The outlook is stable.

The proposed deal is part of BRF’s liability management strategy and should contribute to the reduction in the company’s annual interest expense, Moody’s said, and to the lengthening of its debt-amortization schedule.

The proceeds will cover “green” projects at the company, including energy efficiency, greenhouse-gas emission reduction, renewable energy, water management, waste management, sustainable and efficient packaging, sustainable forest management and raw material use reduction, Moody’s said.

The ratings reflect BRF’s good business profile, solid financial position and leadership both in processed food categories and in global poultry exports, the agency said.

The company’s value-added portfolio and strong brands bring overall higher margin stability and makes the company more resilient to commodity-price volatility, particularly in Brazil, the agency said.

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