Moody's rates Bacardi notes Baa1

Moody's Investors Service said it assigned a Baa1 rating to Bacardi Ltd.'s €650 million five year issue.

The outlook is stable.

The Baa1 rating reflects the company's solid position in the spirits industry, stable cash flows, strong profitability, moderate leverage profile and a seasoned management team, the agency said.

These positives are offset by the company's more modest size when compared, some concentration on Bacardi rum, more focused exposure to the premium and super premium spirits segment, past reliance on debt funded acquisitions to grow the business, previous failure to spread out debt and bank facility maturities, some structural subordination and private ownership with a less independent board than most public companies, according to the agency.

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