Fitch rates Minerva add-on BB-

Fitch Ratings assigned a BB- rating to Minerva Luxembourg SA’s proposed $100 million add-on issuance in a reopening of its 2023 notes.

The notes are unconditionally and irrevocably guaranteed by Minerva SA.

The purpose of the re-opening is to repay higher coupon outstanding indebtedness, Fitch said.

Minerva has a local-currency issuer default rating of BB-, foreign-currency issuer default rating of BB- and national scale rating of A-(bra).

Minerva Luxembourg has a local-currency issuer default rating of BB-, foreign-currency issuer default rating of BB-, along with BB- ratings on its senior unsecured notes due in 2017, 2019, 2022 and 2023 and perpetual notes.

The notes are unsecured, unsubordinated obligations of the issuer and rank equally in right of payment with unsecured and unsubordinated indebtedness of Minerva.

The fundamentals of the Brazilian beef industry remain positive due to the abundant cattle herd, low cost structure and positive revenue momentum derived from strong revenue growth from exports, Fitch said.

The agency said it expects this favorable environment to remain in the near term.

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