Minerva Seen Cutting Leverage

Moody’s changed its outlook for beef producer Minerva to positive, and affirmed its B3 rating. The rating agency says the change in outlook is based on its belief that the Brazilian company will deleverage its balance sheet in 2011. Minerva reduced its leverage as measured by adjusted debt to Ebitda to 5.0x as of LTM September 2010 from 5.9x in LTM June 2010. Moody’s says the rating could be upgraded if the company continues its trend towards greater diversification of revenue and cashflow streams.