S&P gives Smithfield Foods notes BB

Standard & Poor's said it assigned its BB rating to Smithfield Foods Inc.'s shelf drawdown of $500 million senior unsecured notes due 2017.

The corporate credit rating on the company is BB+ and the outlook is negative, S&P said.

"The BB+ rating reflects the highly competitive, commodity-based, cyclical nature of the swine industry, the high fixed costs of pork processing operations and Smithfield Foods' acquisitiveness," said S&P credit analyst Jayne Ross.

"These factors are mitigated by the company's position as the leading producer, processor and marketer of fresh and processed pork in the U.S., its position as a leading beef processor, an experienced management team and a track record of successfully integrating acquisitions."

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