Bear Stearns has increased its rating on the struggling North American brewer Molson Coors to 'peer perform' from 'underperform'.

Bear Stearns said that it believes Molson to be one of the most vulnerable and weak participants in the global beer market. However, the broker said that most of Molson's bad news was priced into the shares now.

"We still do not think that its North American competitive position will improve, that UK industry pressures will recede, or that Brazil will be sold soon," Bear Stearns concluded.