S&P: Smithfield Foods unchanged

Standard & Poor's said that Smithfield Foods Inc.'s (BB+/stable) announcement that it has entered into an exclusive negotiating period with Sara Lee Corp. (BBB+/stable/A-2) for the purchase of its European meats business will have no immediate effect on the rating or outlook of either company.

The agency said it expects that if Smithfield Foods is successful, the transaction will be financed through a joint venture with a private equity firm and that this new entity will operate on a stand-alone, non-recourse basis.

In addition, the agency added it expects that Smithfield Foods' contribution to the joint venture will not result in any material diminishment in the company's overall credit quality.

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