JBS SA has ratings upgraded by Fitch Ratings

FitchRatings has upgraded the rating for Brazilian meat and poultry processor JBS SAfrom BB- to BB with a stable outlook, while the national scale rating has beenupgraded two levels, from A- to A+.

Fitch Ratings has upgraded the rating for Brazilian meat and poultry processor JBS SA from BB- to BB with a stable outlook, while the national scale rating has been upgraded two levels, from A- to A+. JBS SA announced the ratings changes to its shareholders and the market in general on October 6.

According to Johnny da Silva, Fitch's director, "The upgrade reflects JBS' improved business profile following its successful integration of Seara Brasil, whose well-branded and less volatile operation has enhanced JBS' business portfolio. The upgrade also reflects the company's strong products and geographical diversification, as well as Fitch's expectation that JBS will improve its net leverage and free cash flow generation. Fitch expects the company to report strong performance in all of its divisions in 2014 and 2015."

JBS sees this upgrade as another step in the continuous improvement of the company's financial structure, resulting in value creation for all its stakeholders. 

JBS’ net revenue for the second quarter of fiscal year 2014, totaled BRL28.97 billion (US$12.77 million), an expansion of BRL7 billion (US$3.1 billion) or 32.1 percent higher than the third quarter of 2013. This increase was believed to be a result of an improvement in revenues from nearly all business units and to the acquisition of Seara, which was consolidated into JBS Foods in the fourth quarter of 2013.

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