Moody’s upgrades Pernod Ricard

Moody's Investors Service said it upgraded to Baa2 from Baa3 the long-term issuer and senior unsecured ratings of Pernod Ricard SA.

The agency also said it has upgraded the short-term ratings of both Pernod and its guaranteed subsidiary, Pernod Ricard Finance SA, to prime-2 from prime-3.

The outlook is stable.

The upgrades reflect an expectation that Pernod will continue to reduce its financial leverage over the next 12- to 18-months while maintaining a prudent financial policy and adequate liquidity profile, Moody’s said.

The upgrades also consider an opinion that Pernod's credit metrics will slowly improve in 2016 through 2017 as the gradual recovery in the U.S. market and lower one-off cash outflows strengthen free cash-flow generation, the agency said.

The upgrade also reflects an expectation that the company will maintain a conservative financial policy, Moody’s added.

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