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 3.3 percent to 11.77 reais at 1:26 p.m. in Sao Paulo, the biggest one-day gain since March 13 on a closing basis. The BM&FBovespa Small Cap index fell 0.1 percent, resuming trading after a holiday on May 1. The meatpacker’s bonds rose 0.3 cent to 107.77 cents on the dollar, the highest price since April 11.
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 4.6 percent this year, while the small cap index dropped 3.7 percent.
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