S&P affirms AmBev

Standard & Poor's said it affirmed the long-term corporate credit rating on AmBev - Companhia de Bebidas das Americas at BBB.

The outlook was revised to stable from positive.

The change in outlook follows the announcement that parent company InBev NV (unrated) made a cash offer to purchase all outstanding shares of Anheuser-Busch Cos. Inc. (A/Watch negative/A-1) for $65 per share in cash plus the assumption of debt for almost $57 billion.

Ratings reflect very efficient operations, some geographic diversification of sales and the solid resilience of its cash flow, the agency said.

Ratings are somewhat constrained by AmBev's high dependence on cash flow generated in Brazil, its aggressiveness in maximizing shareholder value and a tough competitive environment in Canada, S&P said.

The agency said it expects AmBev to maintain a total debt-to-EBITDA ratio of 1.5 times.

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