S&P: Constellation Brands view to stable

Standard & Poor's said it revised the outlook on Constellation Brands Inc. to stable from positive and affirmed its BB corporate credit rating and issue-level ratings.

The outlook revision reflects an expectation that the company's credit measures will remain near current levels in the near-to-intermediate term, S&P said, and will not improve to levels previously expected.

During the fiscal 2010 fourth quarter, Constellation Brands net sales and EBITDA were below prior expectations due primarily to decreasing inventory levels at U.S. distributors and lower cash earnings for its Crown joint venture as a result of reduced volume, negative mix and a contractual cost increase, the agency said.

The ratings reflect the company's leveraged financial profile, still significant debt burden and participation in the highly competitive beverage alcohol markets, S&P said.

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