Fitch lowers Anheuser-Busch, debt to BBB+

Fitch Ratings said it downgraded Anheuser-Busch InBev SA/NV's long-term foreign and local currency issuer default ratings and senior unsecured ratings to BBB+ from A and its short-term issuer default rating to F2 from F1.

The ratings remain on Rating Watch Negative pending completion of the planned acquisition of SABMiller plc.

Fitch said the two-notch downgrade reflects its view that the company's stand-alone credit profile (ahead of the agreed acquisition of SABMiller) is no longer consistent with an A rating as a result of contracting free cash-flow generation and a step increase in leverage.

Anheuser-Busch’s credit metrics have been affected by large shareholder distributions and adverse currency movements.

While Anheuser-Busch retains ways to mitigate a sustained period of currency weakness, the agency does not foresee any recovery in leverage over the medium-term in the absence of a reduction in shareholder distributions or other cash preservation measures.

The BBB+ issuer default rating continues to reflect the company's important advantages in terms of costs and financial flexibility from its geographic diversification and superior scale and operating profit margin relative to peers, Fitch said.

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