Fitch upgrades SABMiller, debt

Fitch Ratings said it upgraded SABMiller plc's long-term issuer default rating and senior unsecured rating to A- from BBB+.

The short-term issuer default rating was affirmed at F2 and the outlook is stable.

In addition the agency upgraded the senior unsecured rating of debt issued by SABMiller’s subsidiary, SABMiller Holdings Inc., to A- from BBB+.

Fitch said the upgrade reflects the strengthening of SABMiller’s credit profile since leverage peaked in financial year to March 31, 2012 following its acquisition of Foster's.

The agency expects further growth in operating profit, due to opportunities in developing markets and resources unlocked by the company's cost-savings program. This should support the group's ability to continue to generate healthy operating cash flows. Fitch assumes there will be no large transformational M&A in the coming 12 to 18 months.

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