Moody’s rates Constellation Brands notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to Constellation Brands, Inc.'s expected $1.7 billion senior unsecured notes issued in five-, 10- and 30-year maturity tranches.

The proceeds will be used to redeem the $600 million senior unsecured notes due 2022 and for general corporate purposes.

All other ratings for the company are unchanged.

The outlook is stable.

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

The Baa3 rating also reflects Constellation's franchise strength and diversity with a presence in all three alcohol categories, as well as its strong cash flow and solid profitability, Moody’s said.

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