Fitch reiterates JBS rating, with stable outlook
Fitch Ratings has reiterated JBS’ credit rating of BB- with a stable outlook, saying the rating reflects its “strong business profile” and its geographical diversification, which partially mitigates the commercial and sanitary risks. Fitch stressed that the company will achieve a standard of leveraging compatible with the BB- rating, of three times, by the end of this year. JBS ended 2011 with a debt to EBITDA ratio of 4.4 times.
Fitch has based its analysis on the improvements expected for JBS’ chicken unit in the USA, Pilgrim’s Pride (PPC), whose losses last year wiped out the company’s profits in other divisions. In the first quarter of this year, PCC filed a net profit of US$ 39.6 million, compared with a loss of US$ 119.9 million in the same period last year.
Information provided by Valor Economico