Multiple blows are likely to bring JBS and Brazilian livestock and meat industry to their knees. The first of them come from Brazilian court of justice. On the one hand judges have unfrozen 1,6 billion real (420 million euros) for 21 people who are connected with J&F holding (through which Batista’s family is in charge of the meat corporation). Yet, on the other hand, they have also imposed a massive freeze of capitals (193 million euros) in favour of creditors in Mato Grosso do Sul. Hence JBS indefinitely suspended their manufacturing in 7 plants located in Mato Grosso, which is one of the major states for Brazilian livestock and meat industry, where JBS run some of the most productive and profitable factories. Due to the latest upsetting events, JBS management put off quotation of the US branch at NYSE. Yet the action, which aims to safeguard the group and their global operations against difficulties in the domestic market, has been delayed, not cancelled though. Meanwhile Moody’s has downgraded JBS’s bond rating to B3: “Risks connected with inquiries and trials are still high”, clears up the agency as reported by Brazilian press. Apparently Moody’s, who had already downgraded the bond rating last June, is keeping the group under review as they evaluate further downgrades.
