Moody’s improves JBS’s rating
01/04/2009
Risk rating agency Moody's has raised Brazilian packer JBS’s classification from negative to stable suggesting that it considers the company’s operational performance and cash flow as relatively stable.
According to a note from the agency, the result also reflects better liquidity and stronger credit indicators at its US beef units in the last two quarters of 2008 compared with other companies in the sector. The company’s ability to keep suitable liquidity at all times was also taken into consideration.
“We find that JBS's liquidity profile is stronger in the current credit environment following its decision in February 2009 not to acquire National Beef after facing non-acceptable conditions to go ahead with the transaction when the US Department of Justice filed legal action to block the operation in October 2008,” said the agency.
Share this story:
