After Losses, Sadia Gets Loan, Downgrade

Brazilian meatpacker Sadia has obtained a 1-year line worth BRL1.6bn in order to compensate for financial losses, including the BRL760m it said it lost from liquidating FX futures positions. The poultry producer expects to refinance the loan but a Sadia spokeswoman declines to disclose the lender or rate when contacted by LatinFinance. According to local press reports of a Friday conference call, the company said the rates were “competitive” and that it plans to refinance soon, possibly using loans from BNDES. Sadia will chop its 2009 investment budget to cover the loss. Separately, Moody’s cut Sadia’s debt rating to Ba3 from Ba2. “The rating action reflects the expected increase in Sadia’s adjusted total debt to Ebitda ratio to well above 4.0x as a result of new short term bank debt that has been raised over the past weeks to cover the derivatives and counterparty losses,” the agency says. As of June, the debt to Ebitda ratio for the preceding 12 months was 1.8x, according to regulatory documents. The rating remains under review, with further downgrade possible if liquidity pressures increase. Sadia, one of Brazil’s largest food exporter, also fired CFO Adriano Ferreira, who is replaced temporarily by IR director Welson Teixeira.