Moody's Upgrades Brasil Foods' Rating27 March 2012
BRAZIL - Credit rating agency, Moody's has upgraded Brazilian poultry and food processing company Brasil Foods to a Baa3 rating.
The second classification of BRF as investment grade will give greater visibility, opportunity and access to investors for the company, Brasilm Foods (BRF) said.
According to the report released by Moody's the upgrade to investment grade reflects BRF good business profile, solid financial position and leadership both in relevant processed food categories andin global poultry.
The company´s value added portfolio and strong brands bring margin stability and makes the company more resilient to commodity price volatility.
As a result, in contrast to the overall protein industry, the company was much less affected by the challenging competitive environment over the last year.
The agency also highlighted a well-developed and sophisticated logistics and distribution structure, that manages the supplychain from the vertically integrated farmers network to the delivery of its products to about 150,000 customers per month across 98% of the large Brazilian territory.
These factors contribute to an important competitive advantage for the company, BRF said.