April 3, 2019 |
Fitch Ratings said it has cut BRF to BB from BBB-, citing the Brazilian food company's poor performance and high debt levels as reasons for the downgrade.
Fitch also dropped BRF's national rating to AA+(bra) from AAA(bra) but revised the outlook to stable from negative.
BRF is on track to lower its net debt to 4.5x EBITDA this year, down from 6.3x in 2018, but the company has not reduced debt as quickly as expected after Russia closed the pork market to Brazilian exporters and the EU shut out BR
Brazilian food company fails to shed as much debt as expected and faces closed markets in Russia and the EU, rating agency says