S&P rates Cervecerias Unidas, notes BBB

S&P said it rated Compania de Cervecerias Unidas SA and its planned senior unsecured notes due 2032 for up to $600 million BBB.

“We forecast robust credit metrics, even during high commodity costs, thanks to low leverage and efficient and resilient operating performance,” the agency said in a press release.

“Global supply-chain disruptions have reduced the company's inventory levels and increased demand for its products. We expect inflationary pressures to continue and raw material prices to remain high during 2022. Moreover, the Chilean peso's value dropped 20% in 2021, reducing the company's revenue in dollar terms. However, CCU has a relatively strong operating and financial performance, as seen in the 17% rise in sales volumes during first nine months of 2021 compared with the same period in 2020,” S&P noted.

CCU is expected to use the proceeds to add liquidity and/or for capital expenditures.

The outlook is stable.

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