Fitch rates Bacardi BBB-

Fitch Ratings said it assigned a long-term issuer default rating of BBB- to Bacardi Ltd.

The outlook is negative.

The agency said the rating reflects the company's strong investment grade business profile supported by leading premium and above brands, the material global scale of the largest privately held spirits company, product diversification, and solid profitability that generates relatively stable cash flows.

However, these positives are balanced against challenges within Bacardi's key brands that have resulted in stagnant operating performance during the past several years, and the high financial leverage resulting from Bacardi's definitive agreement to purchase Patron Spirits International AG, Fitch said.

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