Constellation Brands Inc.'s Senior Unsecured Notes Assigned 'BBB-' Rating

NEW YORK (S&P Global Ratings) Jan. 29, 2018--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 to repay upcoming debt maturities. Constellation benefits from above-industry-average growth rates (in the high-single digits) in beer manufacturing. The company also has good brand strength across all of its product categories, strong market shares despite some regional concentration, and favorable profit growth prospects as it transitions its beer manufacturing in-house, capturing additional manufacturing margins. We believe Constellation will maintain its credit measures near trailing-12-month levels, including debt to EBITDA near or below 3.5x. Although we expect

...NEW YORK (S&P Global Ratings) Jan. 29, 2018--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. Constellation benefits from above-industry-average growth rates (in the high-single digits) in beer manufacturing. The company also has good brand strength across all of its product categories, strong market shares despite some regional concentration, and favorable profit growth prospects as it transitions its beer manufacturing in-house, capturing additional manufacturing margins. We believe Constellation will maintain its credit measures near trailing-12-month levels, including debt to EBITDA near or below 3.5x. Although we expect the company will remain acquisitive following its recently announced financial priorities (which include a target dividend payout...

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