NEW YORK (Standard&Poor's CreditWire) April 22, 1999--Standard&Poor's today revised its rating outlook for Canandaigua Brands Inc. to negative from stable following the company's announcement of its intention to purchase Franciscan Estates for about $240 million in a debt-financed transaction. At the same time, Standard&Poor's affirmed its double-'B' corporate credit rating and single-'B'-plus subordinated debt rating for the company. About $395 million of rated debt is outstanding. The announcement of the Franciscan acquisition follows about $750 million of mostly debt-financed acquisitions since November 1998, which included Matthew Clark plc, selected Canadian whiskey brands from Diageo Inc., and, most recently, Simi Winery. Although the Franciscan Estates acquisition of premium higher-margin products with strong brand equity should
