Standard & Poor's raises Minerva's credit rating
Risk rating agency Standard & Poor's has upgraded its rating for Brazil's slaughterhouse Minerva to 'brBBB +' from 'brBBB', while reaffirming the 'B +' rating on a global scale. The outlook has changed from stable to positive, indicating that further upward revisions may happen in the next 12 months.
"The upgrade for the rating and the outlook reflect the better than expected cash generation by Minerva, as a result of its strong operating performance in 2012, and our expectation that the company will reduce its leveraging faster," wrote Dario Lopez, a credit analyst at the agency, in his report. The secondary share offering announced last week is one of the main strategies to reduce debt, according to the analyst.
Information provided by Valor Econômico