S&P rates Molson notes BBB-

S&P said it assigned BBB- ratings to both Molson Coors Brewing Co.’s dollar-denominated and Molson Coors International LP’s Canadian-dollar denominated senior unsecured notes.

The final maturities and amounts will be determined, the agency said.

Molson Coors, Molson Canada and certain other existing and future U.S. and Canadian subsidiaries will unconditionally guarantee these notes, S&P said.

The proceeds will be used to partially fund the acquisition of MillerCoors, which it expects to close in the second half of 2016, the agency said.

Given that subsidiary guarantors generate the vast majority of Molson Coors’ operating income, S&P said it views both senior unsecured notes issuances as pari passu to other unsecured debt obligations across the organization.

That is why the BBB- senior unsecured issue level ratings at Molson Coors and Molson Coors International are the same as the corporate credit rating, the agency explained.

Molson Coors has strong market shares, a well-branded portfolio, entrenched distribution, moderate geographic diversification and a portfolio mix that is steadily improving toward craft and other more specialty premium offerings, which should fuel modest long-term earnings growth, S&P said.

The agency also said it believes Molson Coors will remain committed to reducing leverage following the acquisition.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.