S&P rates Smithfield notes BB

Standard & Poor's said it assigned its BB rating to Smithfield Foods Inc.'s $150 million 7% senior notes due 2011. At the same time, S&P affirmed its BB+ corporate credit rating and other ratings on Smithfield Foods.

The outlook is stable.

Proceeds will be used to refinance the debt under the company's revolving credit facility and for general corporate purposes.

S&P said the ratings on Smithfield Foods reflect the highly competitive, commodity-based, cyclical nature of the swine industry; the high fixed costs of pork processing operations; and the company's acquisitiveness. These factors are mitigated by the company's position as the leading producer, processor, and marketer of fresh and processed pork in the United States; its position as a leading beef processor; its experienced management team; and its track record of successfully integrating acquisitions.

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