...NEW YORK (S&P Global Ratings) May 2, 2017--S&P Global Ratings today assigned its '###-' issue-level rating to Constellation Brands Inc.'s proposed senior unsecured notes (the actual amounts and maturity dates will be finalized at the transaction's closing). The company expects to use net proceeds to repay upcoming debt maturities. All of Constellation's debt is rated '###-' despite the company's European term loans benefiting from a priority claim to most of its brands because lenders lend directly to CIH International S.A.R.L and CIH Holdings S.A R.L (the owners of most of Constellation's brands, including the Modelo brands). We estimate these subsidiaries' debt constitute just over 30% of Constellation's adjusted total assets. This indicates that the U.S. debt (which consists of the proposed and outstanding senior note obligations and the company's U.S. borrowing under its bank facilities, including certain U.S. term loans) could be materially structurally subordinated to those claims....
