S&P ups Frigorifico Concepcion

S&P said it upgraded Frigorifico Concepcion SA and senior secured note ratings to B from B-.

“We expect Frigorífico Concepción S.A.'s slaughter activity to reach around 685,000 heads of cattle in 2021 versus 374,000 heads in the last 12 months ended September 2020. We expect an EBITDA margin of around 14%, which is aligned with the 13.5% in September but much stronger than previous years of and 9.6% in 2019 and less than 6% in 2018,” S&P said in a press release.

“Higher volumes, along with strong prices, will enable Concepcion to sustain gross leverage close to 2x and funds from operation (FFO) to debt close to 45% in the next two years,” the agency said.

The outlook is stable.

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