S&P rates Brown-Forman notes A

Standard & Poor's said it assigned an A senior debt rating to Brown-Forman Corp.'s (A/stable/A-1) $250 million 2.5% five-year notes maturing January 2016.

Proceeds will be used for general corporate purposes, including the repayment of commercial paper borrowings and the financing of its recently announced special dividend.

Brown-Forman is expected to maintain average adjusted total debt-to-EBITDA ratio of less than 1.5x.

Ratings reflect the company's position in the distilled spirits and wine industry, geographic diversification, relatively stable cash flow characteristics and moderate financial policies, the agency said.

Concerns about brand concentration and shareholder friendly initiatives temper these strengths, the agency noted.

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