USA: Constellation Brands Inc. announces new $1 billion stock repurchase program

Constellation Brands Inc. announced on November 21 a new $1 billion stock repurchase program, which will be in addition to its existing $1 billion program, MarketWatch reported.

The company did not say when the new program expires. The new buyback program comes after Fitch Ratings upgraded the beer, wine and spirit's company's credit rating to BBB-, or to investment grade status, last week.

"We are pleased with our new Investment Grade status, which has been driven by our ability to continue to generate strong earnings and operating cash flow," Constellation Chief Financial Officer David Klein said. "This provides us with the flexibility to be opportunistic with future share repurchases while remaining committed to our 3.5x targeted leverage ratio."

The stock, which was little changed in premarket trade, has climbed 8.9% year to date through Friday, November 18, while the S&P 500 SPX, +0.11% has gained 6.8%.

22 November, 2016