Moody’s rates Constellation Brands notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to Constellation Brands, Inc.'s $2 billion senior unsecured notes issued in two-, three- and five-year maturity tranches.

Proceeds will be used to refinance existing debt.

All other ratings for the company are unchanged.

The outlook is stable.

Moody’s said the Baa3 senior unsecured rating reflects Constellation's meaningful scale, good product diversification, and Moody's expectation for continued strong organic growth trends.

“The company's products include an extensive portfolio of premium wine, spirits, and imported beers. Constellation is the third largest beer company in the United States – albeit well behind the leaders – and the largest imported beer company in the country,” the agency said in a news release.

Moody's said it expects that Constellation's portfolio of premium imported Mexican beers will continue to grow faster than the overall U.S. beer market.

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