S&P: Cointreau up to positive

Standard & Poor's said it revised the outlook on Remy Cointreau SA to positive from stable.

The agency also said it affirmed its BB- long-term corporate credit rating and the BB- rating on its bonds maturing in 2016.

The recovery rating remains unchanged at 3, reflecting the expectation of 50% to 70% recovery for bondholders in a default.

The outlook revision reflects Remy Cointreau's solid performance in every region of operations, in particular in Asia, S&P said.

The company's credit metrics have improved and will continue to do so in the short- to medium-term on the back of continued growth in sales and profitability and solid positive free operating cash flow generation, the agency said.

The ratings are constrained by its demanding leverage covenant, a track record of high dividend payments and a limited product diversification compared with leading peers, S&P said.

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