Minerva Preps For Possible Upgrade

Moody’s placed Minerva’s B3 corporate family rating on review for a possible upgrade, following the announcement of a planned offering of BRL300m ($190m) in mandatorily convertible debentures. The rating could be upgraded if Moody’s expects the Brazilian beef producer to continue to diversify its revenue and cash flow streams, and reduce adjusted total debt to Ebitda to below 5.0x. Moody’s last rating action for Minerva occurred January 13 when it changed the corporate family rating outlook to positive from stable. This reflected the rating agency’s view that Minerva would continue to deleverage, manage Capex and expand processed food revenues.