Moody’s drops Anheuser Busch view to developing

Moody's Investors Service said it changed the outlook on Anheuser Busch InBev SA/NV (A2/ Prime-1) to developing from positive and affirmed the existing ratings of the company and its guaranteed subsidiaries.

The actions follow the announcement that the company approached SABMiller plc’s (A3/ Prime-2) management regarding the possible combination of the two companies.

Moody’s said that given the uncertainty surrounding any possible deal, including final purchase price and ultimate profile of the company, there are outcomes that could result in a rating higher or lower than the current A2/Prime-1 ratings. Downward rating pressure could result if a deal goes through due to higher leverage and certain integration risks despite the enhanced scale and diversification of the businesses.

If a deal does not happen, there are few other sizeable transactions likely to derail Anheuser Busch’s current deleveraging plans, and the rating could be affirmed or even raised, the agency said.

© 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.