Moody’s reviews SABMiller

Moody's Investors Service said it placed SABMiller plc’s A3 long-term senior unsecured rating, the provisional A3 rating of its medium-term note program and the A3 senior unsecured ratings of its guaranteed subsidiaries under review with direction uncertain.

The agency also placed the P-2 short-term ratings of SABMiller and its guaranteed subsidiaries, and the national scale ratings of Aa3.za/P-1.za assigned to Sabsa Holdings Ltd. under review with direction uncertain.

Finally, Moody's placed the A3 issuer rating of Foster's Group Pty. Ltd., the provisional A3/provisional P-2 rating of the medium-term note program and the senior unsecured A3 ratings of its guaranteed subsidiaries under review with direction uncertain.

The review was prompted by the Oct. 13 combined announcement of both Anheuser-Busch InBev SA/NV's (A2 under review for downgrade) and SABMiller's boards that they reached an agreement in principle on Anheuser-Busch’s intention to make an offer to acquire SABMiller's entire share capital. The firm plans to offer £44 per share, valuing SABMiller at around $106 billion and would include a partial share swap for up to 41% of SABMiller's shares.

Following the announcement, Anheuser-Busch’s ratings were placed under review for downgrade.

Although the transaction structure remains uncertain and subject to a number of conditions, the announcement increases the likelihood that a deal will eventually be concluded, Moody’s said.

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