Minerva claims good financial health
16/03/2009
After having been rated ‘B’ by Standard & Poor's due to a negative CreditWatch classification, which reflects the current market decline and credit conditions for the Brazilian beef industry, Minerva has issued a statement announcing that “its strong capital structure as well as its management and market strategies guarantee the company a comfortable position, even in the face of the recent instability experienced by companies in the same sector”.
According to the company, the funds currently at hand exceed all short-term obligations thus minimising refinancing risk. It also highlights that one of the company’s priorities is to keep a large cash balance and the concentration of funds to cover at least 80% of its long-term debts.
“Besides the financial aspects, the company’s operational and market penetration strategies have ensured Minerva’s financial security. Regarding its commercial strategy, one of the company’s main advantages is market and sector diversification that focuses on solid clients with a positive performance history,” the statement said.
The company also said it expected export figures to show an increase from February thanks to growth in the Middle East and North African markets.
Minerva accounted for 16.4% of Brazilian beef exports in the fourth quarter of 2008.
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