Moody's rates Anheuser-Busch bonds A3, under review

Moody's Investors Service said it assigned A3 ratings to Anheuser-Busch InBev Finance, Inc.'s proposed bonds.

The new ratings are under review for upgrade, consistent with the other long- and short-term ratings of Anheuser-Busch InBev SA/NV (ABI) and its guaranteed subsidiaries.

The notes will be guaranteed by ABI and five other subsidiaries and will be pari passu with all of the guarantors' outstanding unsecured bonds.

Proceeds will be used to term out the acquisition of Oriental Brewing and for general corporate purposes.

On Jan. 20, Moody's placed ABI's A3 long-term and Prime-2 short-term ratings under review for possible upgrade, six months into the integration of Mexican brewer Grupo Modelo SAB and following the announcement that it reached an agreement to re-acquire Oriental Brewing in South Korea for roughly $5.8 billion.

The actual purchase price will be reduced by cash at Oriental Brewing and an about $320 million earn-out payable to ABI resulting from the original 2009 sale of Oriental Brewing to KKR.

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