Moody’s to Review JBS

Moody’s has placed Brazilian meat producer JBS under review for possible downgrade, following concerns about the company’s fast-paced acquisition strategy while it straightens out the operations of Swift, which it acquired in July. “Continued low operating margins at Swift may make it a challenge for JBS to maintain consolidated retained cash flow to net debt above 10%, which is the level that we consider necessary for the current rating category,” says Moody’s. The agency is also concerned that a recently announced partnership with Cremonini will further strain JBS management’s capacity control operating performance at its multiple international operations. JBS has a B1 rating.