Fitch rates NBM US Holdings notes BB-

Fitch Ratings said it assigned a BB- rating to NBM US Holdings, Inc.'s proposed seven-year benchmark-sized senior unsecured notes.

NBM US Holdings is a wholly owned subsidiary of Marfrig Global Food SA.

The notes are also unconditionally and irrevocably guaranteed by Marfrig, MARB BondCo plc, Marfrig Holdings (Europe) BV and Marfrig Overseas Ltd.

The notes will be unsecured senior obligations and will rank pari passu with all unsecured and unsubordinated obligations of Marfrig and the subsidiaries guarantors, Fitch said.

The proceeds are expected to be used to refinance existing indebtedness, including existing notes due in 2021 and 2023, the agency said.

Through these transactions, Marfrig has increased its exposure to beef, Fitch said. But some of the risks related to a single commodity are offset by the lack of historical correlation between the U.S. and Brazilian cattle cycles, the agency said.

Fitch said it expects Marfrig's net leverage to be less than 3.5x in 2019 as a result of improved EBITDA due to positive domestic consumption in the U.S. and Brazil.

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