S&P gives Sadia notes BB

Standard & Poor's said it assigned its BB long-term senior unsecured debt rating to the proposed notes to be issued by Sadia Overseas Ltd., a fully owned subsidiary of Sadia SA (BB/stable), with final maturity in 2014.

The notes will total a minimum of $150 million and will have a minimum maturity of seven years, the agency said, adding that the notes will be unconditionally and irrevocably guaranteed by Sadia on a senior unsecured basis.

S&P said that proceeds from the bond issue will be used to repay short-term higher coupon debt and to fund capital expenditures committed for 2007.

The ratings on Sadia reflect the company's operations in the highly volatile and competitive meat- and food-processing industries and its significant level of gross debt while these negative factors are balanced by Sadia's leading market position, low-cost position, sound profitability levels and its sound liquidity position, the agency noted.

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