Jan 9 - Standard & Poor's Ratings Services said today that it assigned its 'B+' rating to Marfrig Holdings Europe B.V.'s planned $300 million senior unsecured notes due 2017. The rating on the issue reflects the credit quality of both Brazil-based Marfrig Alimentos S.A. (Marfrig; B+/Negative/--), which will irrevocably and unconditionally guarantee the bonds, and its most relevant operating subsidiaries; we analyze these as a single group. The proposed bond issuance, together with the company's recent equity offering through which Marfrig raised about R$1 billion (or about $500 million), will improve its capital structure by reducing overall debt and extending its maturities, lowering the company's annual refinancing risks and sizable interest rate burden. "We expect Marfrig to continue this deleveraging trend and use most of the proceeds of both transactions to pay down debt as it comes due," said Standard & Poor's credit analyst Flavia Bedran. We also expect operating performance to improve thanks to both strong cash flows from its beef division and a gradual recovery in its poultry unit, as grain prices have softened. However, the outlook on the company's corporate credit rating remains negative as Marfrig confronts the volatility of the beef and poultry industry and the need to improve operating efficiencies to generate stronger discretionary cash flows. RELATED CRITERIA AND RESEARCH -- Methodology And Assumptions: Liquidity Descriptors For Global Corporate Issuers, Sept. 28, 2011 -- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008 -- 2008 Corporate Criteria: Ratios And Adjustments, April 15, 2008 RATINGS LIST Marfrig Alimentos S.A. Corporate credit rating B+/Negative/-- Rating Assigned Marfrig Holdings Europe B.V. $300M sr unsec notes B+ Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.