S&P revises Bacardi view to positive

S&P said it revised Bacardi Ltd.’s outlook to positive from stable and affirmed the BBB- issuer credit rating.

“The company continues to demonstrate a commitment to debt repayment after aggressively cutting expenditures to preserve cash flow and repay debt last year,” the agency said in a press release.

S&P noted that Barcardi’s debt to EBITDA for the 12-months-ended June 30, improved more than a turn year over year to 3.4x, and it expects more deleveraging over the next two years as the company remains committed to repaying debt.

“The positive outlook reflects the possibility of an upgrade by fiscal-year-end 2022 (ending March 31, 2022) if the company continues to perform in line with expectations and apply discretionary cash flows (DCF) to debt repayment,” the agency said.

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