NEW YORK (Standard&Poor's) Nov. 12, 2007--Standard&Poor's Ratings Services said today that there would be no effect on its ratings or outlook for Constellation Brands Inc. (BB-/Stable/--) following the announcement that it has reached an agreement to acquire the U.S. wine business of Fortune Brands Inc. for approximately $885 million. The transaction, subject to customary regulatory approvals and other closing conditions, will be financed with debt and is expected to close by Dec. 31, 2007. The acquisition will enhance Constellation Brands' business profile, by adding additional breadth to its domestic premium wine portfolio while somewhat weakening the company's credit ratios. Estimated pro forma leverage will be about 5.5x and funds from operations to debt will be about
