S&P cuts Anadolu Efes to junk

S&P said it trimmed its ratings on Anadolu Efes Biracilik ve Malt Sanayii AS and its senior notes due in November and June 2028 to BB+ from BBB-.

“The downgrade reflects prolonged uncertainty around the final terms and timeline of Anadolu Efes' likely acquisition of ABI's participation in the Russia-Ukraine beer business, originally announced on April 22, 2022. We do not include the transaction in our current base case, given the uncertainty regarding its perimeters, financing package, and execution. That said, we believe the two parties remain in active negotiations. The transaction-depending on the final terms, including its structure and funding mix–will likely weigh on our credit metrics, given that we deconsolidate the Russian operations,” the agency said in a press release.

However, without Russia, S&P said it estimates the company could keep its S&P Global Ratings' adjusted debt to EBITDA below 2.5x and funds from operations to debt over 30% in 2022 and 2023.

The outlook is negative.

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