S&P assigns BBB to Suntory bonds

S&P said it assigned a BBB rating to Suntory Holdings Ltd.'s (BBB/stable/--) dollar-denominated unsecured straight bonds.

The $600 million bonds have a fixed coupon rate of 2.55% and are due on Jun. 28, 2022.

The agency assigned the same rating to the bonds as the company’s long-term corporate credit rating, given its current rating, the asset protection for the bonds and the priority of payment of the bonds among its financial obligations.

S&P said the rating reflects its view that Suntory has an established, stable position in Japan's beverage market, backed by strong alcoholic beverage and soft drink brands; it has built a geographically diversified business base and diversified product mix through a series of mergers and acquisitions in recent years; and its debt to EBITDA of about 4.6 times as of the end of December 2016 remains weak for the agency’s cash flow/leverage assessment of significant.

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