Fitch rates BRF notes BBB-

Fitch Ratings said it assigned an expected BBB- rating to the proposed benchmark-size 10-year notes offering of BRF SA.

These senior unsecured obligations will rank equally with all of BRF's existing and future senior and unsecured indebtedness.

The proceeds will be used to extend the maturity profile of the company's debt through the refinancing of shorter-term debt, Fitch said.

BRF has foreign- and local-currency issuer default ratings of BBB- and national scale rating of AA(bra) and a BBB- rating on its notes due in 2022.

The ratings consider BRF's strong business profile as one of the largest producers and distribution of food in Brazil, Fitch said.

The company is the largest poultry exporter worldwide and has market shares of more than 50% in most of its product segments domestically, the agency said.

BRF benefits from its extensive products offering and strong brand recognition, which allows it to charge premium prices, Fitch added.

Its geographically diversified production base throughout Brazil mitigates risks related to disease, sanitary restrictions and tariffs, the agency said.

The ratings are constrained by BRF's leverage of 2.7x as of March 31, Fitch said.

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