Fitch affirms Anheuser-Busch

Fitch Ratings said it affirmed Anheuser-Busch InBev NV/SA's long-term issuer default rating and senior rating at A and short-term issuer default rating at F1. The outlook on the long-term issuer default rating is stable. The senior ratings of the debt of subsidiaries Anheuser-Busch InBev Worldwide Inc., Brandbrew SA and Anheuser-Busch Cos. Inc. are also affirmed at A/F1.

The affirmation follows Anheuser-Busch InBev's announcement that it will be buying 50% of Grupo Modelo SAB de CV for a net cash disbursement, following asset divestments of $1.85 billion and an equity portion of the price of $1.5 billion, of $14.2 billion.

The agency said that thanks to Anheuser-Busch InBev's free cash flow generation, the company should be in a position to see an only marginal increase in leverage following the transaction. The company's ratio of lease-adjusted net debt to operating EBITDAR is expected to drop to 2 times at the end of 2012 and return to this level at the end of 2014 despite a temporary increase to potentially up to 2.3 times during 2013 as a result of the disbursement, Fitch said.

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