S&P: Sadia unchanged

Standard & Poor's said that the poor first-quarter results announced by Sadia SA (BB/stable) will not immediately affect the ratings.

Sadia's operating margins have been hit by several events, including the spread of the avian flu in Asia and Europe and the effect of the appreciation of the local currency on the company's exports, the agency said.

In addition, Sadia's ability to export pork products was affected by trade barriers imposed since the foot-and-mouth outbreak in Brazil, S&P said.

The gradual reduction of sanitary barriers and the expected recovery of poultry prices internationally should support better operating results, especially from third-quarter 2006, S&P noted.

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