Pernod Ricard has had its rating downgraded. ING yesterday moved its recommendation for the drinks company to 'hold' from 'buy,' while voicing concerns that Pernod will not reach its targeted synergies from the Allied Domecq acquisition.

In a note to clients, the brokerage said: "In recent months, Pernod has sweetened investors with guidance of high synergies.

"However … the acquisition of several local positions and the sale of brands to Diageo lead us to believe that Pernod's forecast €291m synergy level will not be reached."

ING said that it believes synergies will reach a maximum of €240m.

Looking forward, ING said that it may be as late as 2007 "before Pernod has got its portfolio right and reached Diageo's growth rate."