S&P Negative on Bertin

S&P has revised its outlook on the B+ ratings of Brazil-based protein company Bracol Holding (formerly Bertin) to negative from stable. “The outlook revision mirrors the challenging operating environment for the beef sector in Brazil,” says S&P analyst Reginaldo Takara. “High cost pressures, margin compression, and tight credit availability in bank and capital markets have made it more difficult for companies in the sector to implement their growth and financial strategies.” Market conditions for beef companies in Brazil have been rather challenging because of high cattle costs and declining profitability and cashflows in 2008, says the agency.