Fitch cuts Molson Coors to BBB-

Fitch Ratings said it downgraded the long-term debt ratings at Molson Coors Brewing Co. and Molson Coors International LP to BBB- from BBB and the short-term ratings to F3 from F2.

The outlook is stable.

Fitch said the downgrade reflects its expectation that leverage resulting from Molson Coors $12 billion acquisition of SABMiller plc's 58% stake in MillerCoors will trend toward the mid-3 times range (from a pro forma leverage in excess of 5 times at merger close) by 2019 versus Molson Coors' standalone debt to EBITDA of roughly 2.5 times in 2015.

The company will issue up to $9.8 billion of debt to finance the transaction.

In December 2015, Molson Coors entered into a $3 billion committed term loan agreement. As of March 31, there were no borrowings under the term loan.

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