JBS ratings upgraded by S&P
July 20, 2010
by Bryan Salvage
SÃO PAUL, Brazil – Standard & Poor's raised its ratings on JBS S.A. and JBS USA LLC two notes from 'B+' (positive outlook) to 'BB' (stable outlook) on July 16.
"The upgrade reflects JBS´s better consolidated business profile that improved to fair from weak after it acquired a 64% stake in Pilgrim´s Pride Corp. [not rated] and merged with Bertin S.A. [not rated],” Standard & Poor's stated.
"These acquisitions have enhanced the company´s market position and product diversity in beef, pork and chicken, while benefiting it with economies of scale, operating synergies, and stronger bargaining power with suppliers and clients," added Marcelo Schwarz, Standard & Poor´s credit analyst.
"At a time when we are focusing on bringing our balance sheet to a level that reflects a company with an investment grade rating, this upgrade from an agency of the credibility of S&P comes at a good time and demonstrates that our efforts are being recognized,” said Joesley Batista, chief executive officer of JBS S.A. “We will continue to concentrate our energy in elevating the level of JBS for the good of all our stakeholders."
To access the full report, visit S&P website at (www.standardandpoors.com).