E-Malt.com News article: World: SABMiller gets ‘stable rating outlook’ from Moody’s

Moody's Investors Service has issued a “stable rating outlook” on SABMiller, African Business Review reported on June, 30.

The rating reflects the generally stable volume consumption characteristics of the beer sector, the leading positions enjoyed by SABMiller in its territories and Moody's expectation that the company will continue to generate large and stable cash flows.

“SABMiller's Baa1/Prime-2 ratings with a stable outlook reflect the group's global scale; its leading positions in its key territories; its ability to generate a large and stable cash flow; and its good track record in executing and integrating acquisitions,” Yasmina Serghini-Douvin, AVP-Analyst at Moody’s, said in the report.

“It also factors in the company's significant exposure to emerging markets, which account for more than 50 percent of sales, the complexity of the group's debt and legal structure, and the present challenging environment across its markets. In this respect, Moody's notes that the group stepped up its cost reduction initiatives in FY2009/10 and adopted a more prudent approach to investments.

“As a result, we estimate that credit metrics have somewhat improved in the last year although we continue to expect that the company will pursue a prudent financial policy, particularly with regard to expansionary investments, to build more cushion in its rating category,” Serghini-Douvin added.

SABMiller sold 261 million hectolitres of beverages, of which 213 million hectolitres were lager (including the share of joint ventures and associates), for total group revenues (before excise duties and share of associates and joint ventures) of $18.0 billion in FY2009/10, ending 31 March 2010.


02 July, 2010