...The ratings of Diageo plc (Diageo) were downgraded on 2 October 2009, reflecting the high adjusted leverage of almost 3.0x reached at financial year end 2009 (FYE09), as well as limited prospects for deleveraging over FY10 and FY11. In particular, for FY10, Fitch Ratings projects limited profit growth for Diageo, resulting from an ongoing constrained consumer spending environment and a contraction of free cash flow (FCF) following oneoff restructuring cash charges. Generous shareholder distributions up until endH109 have contributed to the gradual increase in leverage, as well as (over FY08FY09) acquisition spending, adverse currency movements, and worsening of the pension deficit....
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