Sustainable competitive advantages and strong financial metrics lead to low credit risk for Brown-Forman. - Morningstar Credit Research

Sustainable competitive advantages and strong financial metrics lead to low credit risk for Brown-Forman.

Sustainable competitive advantages and strong financial metrics lead to low credit risk for Brown-Forman. - Morningstar Credit Research
Sustainable competitive advantages and strong financial metrics lead to low credit risk for Brown-Forman.
Published Dec 27, 2016
12 pages — Published Dec 27, 2016
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Brief Excerpt:

...We affirm our A+ credit rating on Brown-Forman, reflecting the strength and scale of its portfolio of global premium spirits, led by the firm s iconic Jack Daniel s brand. The company s strong intangible brand asset has constructed a wide economic moat, which was assigned by Morningstar, Inc. Brown-Forman s product portfolio is heavily concentrated in its Jack Daniel s brand, which drives roughly half of the firm s volume. Should consumers tastes change, the company s financial results could be pressured. However, we believe Brown-Forman s brand strength and competitive advantages will allow it to maintain pricing power and generate returns on invested capital substantially in excess of its weighted average cost of capital. In addition, relatively consistent demand for Brown- Forman s spirits results in stable operating earnings and cash flow, as the company s products are recession- resistant. Brown-Forman should have no difficulty meeting our estimate of its cash obligations over the...

  
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0C0000071J_20161227_CREDIT
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MLA:
Morningstar Credit Research. "Sustainable competitive advantages and strong financial metrics lead to low credit risk for Brown-Forman." Dec 27, 2016. Alacra Store. Jun 26, 2019. <http://www.alacrastore.com/storecontent/Morningstar-Credit-Research/Sustainable-competitive-advantages-and-strong-financial-metrics-lead-to-low-credit-risk-for-Brown-Forman-2137-33793>
  
APA:
Morningstar Credit Research. (2016). Sustainable competitive advantages and strong financial metrics lead to low credit risk for Brown-Forman. Dec 27, 2016. New York, NY: Alacra Store. Retrieved Jun 26, 2019 from <http://www.alacrastore.com/storecontent/Morningstar-Credit-Research/Sustainable-competitive-advantages-and-strong-financial-metrics-lead-to-low-credit-risk-for-Brown-Forman-2137-33793>
  
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