Moody's rates Constellation Brands notes Baa3

Moody's Investors Service said it assigned Baa3 ratings to Constellation Brands, Inc.'s senior unsecured notes in three-, seven-, 10- and 30-year tranches.

All of the other ratings for the company are unchanged.

The outlook is stable.

The proceeds will be used in conjunction with borrowings under their credit facilities, commercial-paper program and cash-on-hand to finance the pending incremental investment in Canopy Growth Corp., Moody's said.

The ratings reflect the company's meaningful scale, good product diversification and an expectation for continued strong organic growth trends, the agency said.

The company's products include an extensive portfolio of premium wine, spirits and imported beers, Moody's said.

The agency said it expects that Constellation's portfolio of premium imported Mexican beers will continue to grow faster than the overall U.S. beer market.

The ratings also consider Constellation's franchise strength and diversity with a presence in all three alcohol categories, as well as its strong cash flow and solid profitability, Moody's said.

These strengths are balanced by the company's track record of debt-financed acquisitions and large capital spending requirements resulting from its growing Mexican beer business, the agency said.

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