Fitch rates Smithfield B-

Fitch Ratings said it assigned an initial issuer default rating of B- to Smithfield Foods, Inc. Fitch said it rates Smithfield's debt as follows: long-term issuer default rating at B-; secured asset-based revolver at BB-/RR1; secured term loan at BB-/RR1; secured notes at BB-/RR1; and senior unsecured debt at CCC/RR5.

The outlook is stable.

Fitch said the ratings incorporate Smithfield's high financial leverage, low margins, volatile cash flow generation and the current unprecedented losses in hog production.

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