Moody's rates Moy Park bonds B1

Moody's Investors Service said it assigned a B1 corporate family rating and a B1-PD probability of default rating to Moy Park Holdings (Europe) Ltd. and provisional B1 ratings to Moy Park (Bondco) plc's £200 million senior fixed-rate notes due 2021 and £50 million senior floating-rate notes due 2017. The outlook is stable.

Proceeds from the notes will be used to pay a dividend to Moy Park's parent, Marfrig Global Foods SA (B2/stable), and to fund the acquisition of the European assets of fellow Marfrig subsidiary Keystone.

The agency said Moy Park's corporate family rating reflects the company's limited product diversification, its high geographic and customer concentration, the potential for events beyond the company's control and a leveraged credit profile, with weak margins reflecting the commodity-like nature of its products, and negative free cash flow.

The rating also reflects the company's leading market position, favorable sector demand dynamics and strong, longstanding relationships with key suppliers and customers, Moody's said.

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