Fitch upgrades Marfrig

Fitch Ratings said it upgraded Marfrig Global Foods SA's issuer default rating and senior unsecured notes to B+ from B.

The agency also upgraded the foreign currency issuer default rating of Marfrig Overseas Ltd. This rating was subsequently withdrawn because Marfrig Overseas is a special purpose company and the ratings of this entity are no longer considered to be relevant to the agency's coverage.

In addition, Fitch upgraded Marfrig's national scale rating to BBB+(bra) from BBB(bra).

The corporate outlook is stable.

Fitch said the upgrade reflects Marfrig's lower leverage and adequate liquidity position. The upgrade incorporates the agency’s expectation that the company will generate positive free cash flow in the next two years thanks to increased EBITDA, lower interest expenses and better working capital management. Fitch expects Marfrig to report strong performance in 2014 thanks to positive fundamental of the beef industry, robust international demand and lower grain costs.

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