NEW YORK (Standard&Poor's) May 18, 2004--Standard&Poor's Ratings Services said today that there would be no impact on Constellation Brands Inc.'s rating or outlook (BB/Stable/--) following Constellation's announcement of its proposed plans to form a luxury wine group along with Domaines Barons de Rothschild (Lafite) and the Huneeus Family. Constellation will own approximately 38.6% of this new joint venture. As part of the transaction, The Chalone Wine Group, a premium wine producer that is currently 46%-owned by Rothschild, would be taken private, and Constellation would provide a portion of the cash funding for Rothschild to buy the remaining 54%. Constellation estimates that its cash contribution will be about $54 million, which will be funded from working capital
