Moody's upgrades Brasil Foods debt

by Meat&Poultry Staff
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SAO PAULO, Brazil – Moody’s upgraded Brasil Foods senior unsecured debt to Baa3 or investment grade.
The ratings service said the ratings upgrade reflects BRF’s good business profile, solid financial position and leadership both in relevant processed food categories and global poultry exports.

"In our view, the company´s value added portfolio and strong brands bring margin stability and makes the company more resilient to commodity price volatility," said Moody's local market analyst Marianna Waltz.

The agency said the company was much less affected by challenging market forces compared to the overall protein industry. Moody’s also attributed the ratings change to Brasil Foods’ logistics and distribution structure which manages the supply chain from the farm to delivery of its products to 150,000 customers per month across 98 percent the country.

"These factors contribute to an important competitive advantage for the company," added Waltz.

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