S&P raises Suntory, Beam

S&P said it raised its issuer and debt ratings for Suntory Holdings Ltd. and Beam Suntory Inc. to BBB+ from BBB.

We base the upgrade on our expectation that Suntory's debt-to-EBITDA ratio will remain below 3x for the next two years, backed by stable profit and disciplined financial management. Suntory is Japan's largest general beverage manufacturer by sales, while Beam Suntory is a U.S.-based subsidiary. The upgrade also reflects our view the company is unlikely to conduct large debt-financed acquisitions that result in considerable financial deterioration, even as it invests for growth,” S&P said in a press release.

The outlook for both companies is stable.

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