JBS attempted to quash talk it was back on the takeover trail even as Fitch Ratings issued a reminder over the risk posed by the meat giant's "aggressive" deal strategy.

The world's biggest beef and lamb producer, reacting to a report in Brazil's Newspaper O Estado de San Paulo that it was in talks to buy food producer Goias Verde Alimentos, distanced itself not just from this deal but also from any takeover.

"This company is not negotiating any acquisition, and denies news content circulating in the Brazilian press," JBS said.

The statement came as Fitch Ratings restated a warning that JBS's risk profile "is above average due to cyclical risks associated with the meat businesses and the company's aggressive attitude to growth through acquisitions".

Downgrade threat

Fitch made the comments as it rated at BB-, in junk territory, $400m of senior unsecured bonds JBS is issuing to repay higher-cost short and medium term debt.

And Fitch also warned that it could, like rival ratings agencies, trim its thoughts on JBS debt if the meat giant's performance does not pick up, after being held back by the poor US chicken market, which the group bet large on with the purchase from bankruptcy of Pilgrim's Pride two years ago.

"Continued underperformance during the next two quarters… could lead to a ratings downgrade," Fitch said.

Both Moody's and Standard & Poor's late in 2011 trimmed their outlooks on JBS's credit rating from "positive" to "stable", following disappointing results.

Both agencies also rated JBS's latest bond issue as being below investment grade.

Cost cuts

JBS has under Wesley Batista, who succeeded his brother Joesley as chief executive a year ago, been attempting to weaken its image as a takeover junkie, stressing instead its focus on making the best of deals already done.

The Brazil-based group last month unveiled plans to cut annual costs by $500m through measures such as streamlining its processing operations, and making efficiency gains in logistics.

However, it has also unveiled ambitions to "increase our presence in 2012" in Brazil's dairy market, which it sees as boasting "significant opportunities".

JBS shares closed up 1.4% at R$5.90 in San Paulo.