S&P rates J&F B, notes B-; Swift outlook positive

Standard & Poor's said it assigned its B corporate credit rating to J&F I Finance Co. and its B- unsecured debt rating to J&F I Finance's proposed $200 million of senior notes due 2015, $200 million of senior toggle notes due 2015 and $200 million of senior floating-rate notes due 2014.

The agency noted that J&F I Finance Co. will be merged with and into Swift & Co.

At the same time, S&P said it revised the CreditWatch implications of all ratings on Swift, including its B corporate credit rating, to positive from developing, where they were placed on May 29, following JBS SA's (B+/Watch negative) announcement that its holding company J&F Participações (not rated) had signed an agreement for the acquisition of Swift for $1.4 billion.

Although Swift is being acquired by J&F I Finance, a subsidiary of J&F, in the agency's analysis, it views JBS and Swift as one economic entity given the common ownership, management and lines of businesses of the two companies, the consolidation of the Swift brand under one owner and the willingness of its owners to contribute $500 million of equity to complete this transaction.

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