Fitch has revised its outlook for Diageo. The move, from negative to stable, follows Diageo's decision to pay down debt and buy back shares with the proceeds from the sale of most of its stake of General Mills.

The outlook revision suggests that there is a lower chance of the company's debt ratings being cut over the next 18 to 24 months.

Diageo said yesterday (20 October) that it would use half of the £1.2 bln of proceeds to buy back debt, and the other half to buy shares.

Fitch said that it had previously placed the company's debt rating outlook at negative because of uncertainty about how the proceeds would be split between equity and debt holders.