NEW YORK (Standard&Poor's) July 18, 2006--Standard&Poor's Ratings Services said today that there would be no effect on ratings or outlook of Constellation Brands Inc. (BB/Negative/--) following the announcement that Grupo Modelo S.A. de C.V. (unrated) and Constellation Brands have reached a new agreement to create a 50/50 joint venture, which will import and market Modelo's Mexican beer portfolio across the U.S. and Guam for a 10-year period beginning in 2007. Constellation Brands has been importing Modelo's brands to the U.S. since 1978, serving 25 primarily Western states. In connection with this agreement, Constellation Brands will contribute its Barton beer business, including fixed assets and working capital, and Modelo will contribute cash equal in value to Constellation
