S&P rates Tyson notes BB

Standard & Poor's said it assigned a BB senior unsecured debt rating and 3 recovery rating to Tyson Foods Inc.'s planned $500 million note issuance due 2014. The company's BB corporate credit rating was affirmed.

The outlook is negative.

Proceeds will be used to help fund current and future debt maturities and to terminate commitments under its accounts receivable facility. Tyson will also put in place a $1 billion asset-backed revolving credit facility due 2012 (not rated) that would replace its existing $1 billion revolving credit facility.

Ratings on Tyson and wholly owned subsidiary Tyson Fresh Meats Inc. reflect the company's exposure to commodity price swings, the very low-margin nature of the majority of Tyson's sales and its high debt leverage, the agency said.

The company benefits from its position as one of the largest marketers and producers of beef, chicken and pork; its product portfolio diversity; its position as one of the lowest-cost producers; and the high barriers to entry in these industries, S&P noted.

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