S&P rates Bacardi notes BBB+

S&P said it assigned a BBB+ rating to Bacardi Ltd.'s proposed senior unsecured notes, the final issue amount, maturity and coupon to be determined.

The proceeds will be used primarily for repayment of debt under the commercial-paper program and other short-term borrowings, the agency said, and for general corporate purposes.

Bacardi is one of the largest global suppliers of distilled spirits and benefits from a core portfolio of well-established global brands, S&P said.

Although the company faces competition from larger distilled spirits suppliers and volume growth has underperformed expectations, the agency said it believes the company's product portfolio is strong and can rival competitors' and gain share as management executes its strategies.

Following several changes in management positions, its leadership team is taking steps to bring marketing efforts and brand strategy closer to its markets and customers with an increased focus on Bacardi in North America and Martini in Europe, S&P said.

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