Moody's: Smithfield unaffected

Moody's Investors Service said that the planned issuance of $250 million of common shares by Smithfield Foods, Inc. has not, at this time, had an impact on the company's B2 corporate family and probability of default ratings, its speculative-grade liquidity rating of SGL-3 or its stable outlook.

The planned share issuance, which could be upsized, is a credit positive in that it will bolster liquidity and reduce leverage, the agency said.

However, given the size of Smithfield's reported debt - over about $3.2 billion, pro-forma for the $225 million add-on bond issued in August and the $320.7 million repayment of outstandings upon cancellation of the Euro RC - the proposed equity issue will not lower leverage materially, Moody's added.

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