Fitch withdrew its 'BB' issuer default rating on Smithfield on Oct. 31, 2012 but continues to rate Tyson Foods, Inc. (TSN: Tyson; rated BBB/Positive), Hillshire Brands Co. (HSH: Hillshire; rated BBB/Stable), JBS S.A. (JBS; rated BB/Stable) and Cargill Inc. (Cargill; rated A/Negative). We believe credit risk varies across these firms due to differences in financial leverage and cash flow stability. Past acquisitions of U.S. protein firms include Brazilian-based JBS's purchase of a controlling stake of then-bankrupt U.S.-based chicken producer Pilgrim's Pride Corp. (Pilgrim's) in 2009 in a deal valuing the entire firm at about $2.8 billion, or roughly 7.0x Pilgrim's normalized EBITDA. Pilgrim's creditors were repaid in full when the firm was acquired, even while the firm was operating under bankruptcy protection.