Fitch rates JDE Peet's notes BBB-

Fitch Ratings said it assigned JDE Peet's NV new €2 billion notes a BBB- senior unsecured rating.

The notes are guaranteed by the issuer’s two core subsidiaries JDE International BV and Peet's Coffee Inc. and are rated at the same level as the company's issuer default rating, Fitch said.

Proceeds are expected to be used to repay part of the €3.7 billion term loans currently outstanding at JDE International, which will result in about 60% of debt being at the parent company level, the agency said.

“We view this issue as part of a process to achieve a capital structure that is more aligned with the company's investment-grade profile and to enhance financial flexibility,” Fitch said in a press release.

The outlook is stable.

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