Constellation Brands Inc.'s Proposed Senior Unsecured Notes Rated 'BBB-'

NEW YORK (S&P Global Ratings) Nov. 29, 2016--S&P Global Ratings today assigned its 'BBB-' 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 from the offering for general corporate purposes. Constellation has both secured and unsecured debt in its capital structure, including certain European term loan obligations that benefit from lending directly to the company's international subsidiaries. Nevertheless, all of Constellation's debt is rated 'BBB-' despite the company's European term loans benefiting from a 100% stock pledge of its Mexican operating subsidiaries that own its beer manufacturing assets and from a priority claim to most of its brands. The

...NEW YORK (S&P Global Ratings) Nov. 29, 2016--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 from the offering for general corporate purposes. Constellation has both secured and unsecured debt in its capital structure, including certain European term loan obligations that benefit from lending directly to the company's international subsidiaries. Nevertheless, all of Constellation's debt is rated '###-' despite the company's European term loans benefiting from a 100% stock pledge of its Mexican operating subsidiaries that own its beer manufacturing assets and from a priority claim to most of its brands. The European term loan lenders have a priority claim on the brands because they lend directly to CIH International S.A.R.L and CIH Holdings S.A R.L (the owners of most of Constellation's...

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