Standard & Poor's gives BBB credit rating to Pernod Ricard, cites company's 'excellent' business risk profile, solid free cash flow generation; outlook stable

Nevin Barich

Nevin Barich

Apr 13, 2012 – Standard & Poor's

NEW YORK , April 13, 2012 (press release) – CREDIT RATING: BBB-/Stable/A-3 Country: France

Primary SIC: Wines, brandy,

and brandy

spirits

Mult. CUSIP6: 714264

Credit Rating History:

Local currency Foreign currency

03-Oct-2011 BBB-/A-3 BBB-/A-3

17-Nov-2006 BB+/B BB+/B

Rationale

The ratings on French spirits producer Pernod Ricard S.A. (Pernod) reflect Standard & Poor's Ratings Services' view of its "excellent" business risk profile, which is supported by its No. 2 position in the stable and cash-generative global-branded spirits market, and its solid free cash flow generation. The ratings further factor in our opinion that the group's financial policy is in line with an investment-grade rating. However, our view of Pernod's financial risk profile as "aggressive" continues to constrain the ratings, and reflects a debt-to-EBITDA ratio of more than 4.0x, following a series of transformative and primarily debt-funded acquisitions over the past decade.

S&P base-case operating scenario

We believe that Pernod will continue to deliver sound performances, with mid-to-high single digit organic growth in revenues, and stable EBITDA margins, at least, in 2012.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.

Share:

About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025 795

+1 (310) 558 0008
+1 (310) 558 0080 (FAX)

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.