World: InBev rated 'BBB+' by Standard & Poor, Anheuser-Busch cut on merger deal, outlook stable

Standard & Poor's Ratings Services said that it assigned its 'BBB+' long-term and 'A-2' short-term corporate credit ratings to Belgium-based international brewer InBev after Monday's merger agreement with U.S. brewer Anheuser-Busch Cos Inc., Thomson Financial News posted on July 15.

At the same time, S&P lowered its long-term corporate credit and senior unsecured debt ratings on Anheuser-Busch to 'BBB+' from 'A' and removed them from CreditWatch, where they were placed with negative implications on June 12 following a proposal by InBev to acquire the company. Anheuser-Busch's 'A-1' short-term corporate credit and commercial paper ratings were also affirmed and removed from CreditWatch because the ratings agency assumes that all outstanding commercial paper will be retired if the transaction is completed.

The outlook on both InBev and Anheuser-Busch is stable, S&P added in a statement.

'The proposed transaction has received the approval of both companies' boards and will probably close over the next one or two quarters,' said S&P credit analyst Anna Overton. 'Absent the Anheuser-Busch transaction, InBev is likely to resume an active share buyback and acquisition policy, which might still keep debt leverage at levels commensurate with the current rating.'

16 July, 2008