Brazil-based JBS SA's market ratings will not immediately be affected by the company's rental of poultry producer Doux Frangosul's assets, according to Standard & Poor's Ratings Services.


JBS's move marks its entry into the Brazilian poultry market, but its operations are still on a smaller scale compared to either its beef production or with its largest competitors, Brasil Foods SA and Marfrig Alimentos SA, said Standard & Poor's. "While we expect a positive cash generation from JBS's beef operations due to lower cattle prices, we will monitor the company's expected higher working capital needs to ramp up the recently leased beef plants and start operating Frangosul assets," said Standard & Poor's. "JBS will not assume any financial or fiscal liability from Frangosul, but will have additional disbursements to ramp up Frangosul's poultry chain."