S&P Lowers Marfrig

S&P has lowered Marfrig Alimentos to B from B+, it says, after poor results have prohibited improvements to credit metrics. The Brazilian food products company’s negative working capital and weak cash flows have prevented expected debt reduction. The agency expected some debt reduction and stronger cash generation to result in debt to Ebitda of 7.0x and funds from operations to debt close to 10%, a scenario that it now expects for 2014-2015. The outlook is negative.