Moody's: Smithfield on uncertain review

Moody's Investors Service said it placed the long-term debt ratings of Smithfield Foods, Inc. under review direction uncertain following the company's announcement that it entered into a merger agreement with Shuanghui International in a transaction valued at about $7.1 billion.

The transaction is subject to shareholder and regulatory approval, which the companies expect to receive in the second half of 2013.

Smithfield's SGL-1 speculative grade liquidity rating was affirmed.

"We currently do not have sufficient details on the proposed transaction to understand the overall effect on the company's credit profile, but it is likely to be significant," Moody's senior credit officer Brian Weddington said in a news release.

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