June 19, 2019 |
Fitch Ratings said it has upgraded JBS to BB from BB- with a stable outlook as the Brazilian meatpacker refinances debt with longer maturities.
JBS' net debt equaled 3.2x EBITDA at the end of the first quarter this year, but Fitch said it expects the company to lower the ratio to 2.5x by the end of fiscal year 2019.
"Fitch expects JBS to continue to deleverage due to strong free cashflow generation given the company's strong performance at its US operations (including Canada and Australia)," the
Rating agency expects the Brazilian meatpacker to lower debt levels on rising cashflow