Minerva Climbs Most in Seven Weeks as S&P Upgrades Rating

Minerva SA, Brazil’s third-largest beef producer, advanced the most in seven weeks after Standard & Poor’s raised its credit rating by one level.

The shares gained 5.2 percent to 11.99 reais at the close of trading in Sao Paulo, the steepest one-day gain since March 13. It was the second biggest advance in the BM&FBovespa Small Cap index, which fell 0.5 percent, resuming trading after a holiday on May 1. The meatpacker’s bonds due in 2023 rose 0.59 cent to 108.03 cents on the dollar, the highest price since March 18.

S&P raised the Barretos-based company’s rating to BB-, or three levels below investment grade, after markets closed on April 30, citing its improved capital structure and liquidity levels. Minerva has increased gross margins and cash-flow generation, according to S&P.

“Cattle prices will continue to be favorable in the next two to three years, contributing to Minerva’s gradually improving credit metrics,” S&P analysts wrote in the report.

Minerva shares have gained 6.7 percent this year, while the small cap index dropped 4.1 percent.

Before it's here, it's on the Bloomberg Terminal.
LEARN MORE