Fitch lifts Constellation, rates notes BB+

Fitch Ratings said it upgraded the long-term issuer default rating of Constellation Brands, Inc. to BB+ from BB, along with its secured bank credit facility to BB+ from BB and senior unsecured notes to BB+ from BB.

The outlook was revised to stable.

Fitch also said it assigned a BB+ rating to the $600 million 6% notes due 2022 recently issued by the company.

The upgrades reflect its significant free cash flow, reduced debt levels and largely internally funded share repurchases, the agency said.

The ratings and outlook also consider the company's leading global market positions and well-known portfolio of wine, spirits and beer brands, Fitch said.

The ratings balance the general stability of the company's operations, good operating margins and consistent free cash flow generation with its acquisitive nature and leverage, which has been declining, the agency said.

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