Marfrig Outlook Negative, Says Moody’s

Moody’s has assigned a negative outlook to Marfrig, citing the risks associated with the company’s acquisitive growth strategy and the challenges of integrating the new acquisitions into the company while improving their margins without disrupting its other businesses, says Moody’s. The negative outlook also reflects Marfrig’s limited track record for generating positive funds from operations and its intensive working capital needs, which continue to drive negative cash flow from operations. Confirmed with negative outlook are the company’s corporate family rating of B1 and that of its $375m 9.625% senior unsecured notes due 2016, also rated B1.