Moody's gives Constellation Brand notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to Constellation Brand's $700 million senior unsecured note issuance which will be used to reduce outstanding borrowings under the $900 million revolving portion of the company's senior credit facility.

All other ratings of the company are affirmed and the outlook remains stable, the agency said.

Moody's said that it last took rating action on Constellation Brands on March 1 when the company announced its plans to do a debt-funded share buyback on the heels of a string of acquisitions including the acquisition of SVEDKA Vodka, announced in February of this year.

Moody's said it, at that time, downgraded the corporate family rating to Ba3 from Ba2 and said that the string of acquisitions followed by the shift to a more aggressive financial policy as demonstrated by the share buyback, which will be accelerated, led to the downgrade.

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