Moody’s gives Keurig notes Baa1

Moody's Investors Service said it assigned a Baa1 rating to Keurig Dr Pepper Inc.'s new senior unsecured notes.

All other ratings for the company including the Baa1 senior unsecured ratings remain unchanged, the agency said.

The issuer plans to use the proceeds to refinance debt and repurchase a portion of the company's shares held by JAB Holding Co. Sarl.

“The transaction is credit negative because the debt-financed share purchase increases leverage and cash interest expense. However, the transaction will also bolster liquidity by extending the maturities of current debt,” Moody’s said in a press release.

The outlook remains stable.

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