The ratings on Victor, N.Y.-based Constellation Brands Inc. reflect the company's leveraged financial profile, still-significant debt burden, and participation in the highly competitive beverage alcohol markets. Constellation Brands benefits from its historically strong cash generation from a diverse portfolio of consumer brands and past debt reduction efforts. Constellation Brands is a leading international producer and marketer of beverage alcohol. It is a leading global wine company and the largest multicategory supplier of beverage alcohol (wine, spirits, and imported beer, through its Crown Imports LLC joint venture) in the U.S. The company recently announced that it had agreed to sell 80% of its Australian and U.K. business. Estimated net proceeds of less than $200 million are expected to be used for
