Moody's rates Anheuser bonds A3

Moody's Investors Service said it assigned an A3 rating to Anheuser-Busch InBev Finance, Inc.'s new three-, five-, 10- and 30- year bonds. The outlook remains positive.

The proceeds will be used for general corporate purposes and to prefund the acquisition of Grupo Modelo, which is expected to close in the first half of 2013.

The agency said the issuer's ratings reflect the company's scale as the world's largest brewer, its wide portfolio of beer brands at various price points, leading market positions in some of the world's largest and most profitable beer markets and seasoned management with a solid track record of integrating acquisitions and reducing leverage.

At the same time, the ratings factor in the company's exposure to somewhat more volatile economies, although it has a broadly balanced earnings base, the difficult consumer environments in North America and Western Europe and continued high commodity prices, which slows down margin improvement, Moody's said.

The positive outlook reflects the agency's expectation that Anheuser-Busch InBev will successfully integrate the Modelo business and achieve cost synergies as planned. It also reflects Moody's expectation that management will remain committed to reducing leverage while growing the scale and profitability of its business, which could lead to an upgrade.

© 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.