US: Moody's upgrades AmBev
Moody's upgraded the foreign currency issuer rating of AmBev to B1 from B2 and affirmed the company's global local issuer rating of Baa3. The outlook on the global local rating is developing.
The rating action is the direct result of Moody's having upgraded Brazil's country ceiling for foreign currency bonds and notes to B1, from B2. The upgrade reflects Moody's view that a continued export expansion combined with less reliance on foreign-currency borrowing - which has sharply reduced the ratio of external debt to exports - is sustainable.
AmBev's global local issuer rating of Baa3 is based on the company's strong and profitable beer and beverage franchise in its core market of Brazil, and its strong presence in many other markets.
In August 2004, the company merged with Interbrew to form the largest beer company by volume globally. The transaction is expected to result in very little change in debt protection measures at AmBev, Moody's said, and adds the benefits of greater diversity and more stable markets in the overall mix of AmBev's businesses, offset by the greater challenges of managing a more widespread geographic region.
AmBev will gain control of Labatt in Canada, and will assume C$1.3 bln of debt, although the unwinding of the relationship with Femsa will leave AmBev without a partner in Mexico.
Moody's does not rate debt at Labatt. The final structure of the assumed contractual debt obligations is not yet known. The developing outlook reflects remaining uncertainties related to the transaction, some of which could have either positive or negative impact on AmBev´s outlook. These uncertainties include the ultimate structure of the North American subsidiary debt.
The global roll-out of InBev's Brazilian beer, Brahma, adds a third premium brand to the global brewer's international portfolio but some observers have suggested it's an unnecessary step which threat...
Functional soft drinks are relatively undeveloped in Latin America in comparison with Europe but there is significant growth potential. Hope Lee of industry analysts, Euromonitor International, examin...
InBev has announced that the deadline for the receipt of acceptances for the recommended offers of US$33.41 for the remaining Class A (non-voting) shares in SUN Interbrew, along with Class A Securitie...
SUN Interbrew is looking to buy into a Siberian brewer, according to local press reports....
Interbrew UK has announced plans to launch a new speciality beer....
InBev has extended the deadline for the receipt of acceptances for the recommended offers of USD33.41 in cash for the remaining shares and Securities that it does not already own in SUN Interbrew (SIL...
The Brazilian brewer AmBev, now part of the InBev empire, said yesterday that its first quarter net income had fallen 52.7% to R$144.2m....
AmBev Peru is to launch a new beer in the market that will bring competition to a market so far dominated by the monopoly of Union de Cervecerias Peruanas Backus & Johnston SAA, or Backus....
- How to turn a domestic spirit into a global brand
- Mahou San Miguel - just the Facts
- A game of two halves for Remy Cointreau - Analysis
- Whatever happened to binge Britain? - comment
- Britvic hits make-or-break time for US Fruit Shoot
- Beam Suntory to sell brandy & sherry to Emperador
- Former Diageo exec joins William Grant in LatAm
- A-B InBev mulls sale of Peroni, Grolsch - report
- This week in spirits & wine
- Captain Morgan distillation trial queried by USVI
- Global Beer Trends 2015 : Global Beer Trends and Long-term Forecasts
- Future growth opportunities for global spirits
- Global sparkling wine insights - market forecasts, product innovation and consumer trends research
- Global Beer Market 2015-2019
- Global Wine Market to 2019 - Market Size, Development, and Forecasts