Fitch rates Constellation new loans BBB-

Fitch Ratings said it affirmed the issuer default rating for Constellation Brands Inc. and for CIH International Sarl at BB+.

Fitch also said it assigned a BBB- rating to Constellation’s new $1.15 billion senior secured revolver at with recovery rating of RR2, along with a BBB- rating to its $1.27 billion senior secured term loan A with recovery rating of RR2 and a BBB- rating to its $241.9 million senior secured term loan A-1 with recovery rating of RR2.

The agency also assigned a BBB- rating to CIH International Sarl’s $1.43 billion European term loan A with recovery rating of RR1.

Fitch also said it withdrew all of the ratings assigned to Constellation’s previous credit facility and term loans.

The outlook is stable.

Constellation has amended its credit facilities to increase the size of the revolver by $300 million to $1.15 billion and U.S. term loan A by $200 million to $1.27 billion, replacing the current U.S. term A and U.S. term A-2, Fitch said.

In addition, the company will be consolidating their European term A and term B into a new $1.43 billion European term A, the agency said.

The amendment also extends the maturities of the term loans to 2020 for the revolver, U.S. term A and European term A, Fitch said, and to 2021 for the U.S. term A-1.

The amended agreement has substantially similar negative covenants with certain modifications, including an increase in the dividend restricted-payment carve-out to $100 million per quarter, the agency said.

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