Fitch rates Brazil’s JBS USA bonds 'BBB-' in debt refinancing plan

Published: 2025-06-26 08:30:18 ET JBS

Published on 06/26/2025 at 08:30

Fitch Ratings has assigned a 'BBB-' rating to JBS USA Holding Lux S.a.r.l.’s proposed benchmark-size senior unsecured notes maturing in 2036, 2056 and 2066, the agency said in a press release.

The notes will be co-issued by JBS USA Food Company and JBS USA Foods Group Holdings Inc., and guaranteed by JBS S.A.

Proceeds will fund the tender offer for 2027 notes, partial or full redemption of 2028 notes, and repayment of short-term debt, including commercial paper. Remaining funds will go towards general corporate purposes, including debt reduction.

Fitch affirmed JBS's long-term issuer default ratings at 'BBB-'/Stable and national scale at 'AAA(bra)'/Stable, citing a strong business profile, stable cash flow and expected gradual deleveraging.

JBS’s EBITDA is projected at USD6.3bn in 2025 and USD6.8bn in 2026, with net leverage declining to 1.8x by end-2026.

JBS USA is viewed as having the same credit profile as its parent, supported by business integration and guarantees. Fitch highlighted the group’s diversification and scale as advantages over peers such as Marfrig and Minerva.

JBS’s recent dual listing in Brazil and the US is seen by Fitch as enhancing transparency and investor access. “This could strengthen financial flexibility and expand funding options,” the agency noted.