S&P turns Suntory view to positive

S&P said it revised to positive from stable the outlooks on its long-term issuer credit ratings on Suntory Holdings Ltd. and its subsidiary Beam Suntory Inc.

“We base the outlook revision on our expectation that Suntory, Japan's largest general beverage manufacturer, will steadily improve its debt to EBITDA in the coming one to two years despite challenging business conditions. We think it can reduce debt gradually with generation of stable cash flows and adherence to conservative financial management,” S&P said in a press release.

S&P said it estimates Suntory’s annual EBITDA will hover in the healthy ¥380 billion-¥390 billion range in the next one to two years despite inflation in raw materials and energy.

The agency also affirmed its BBB long-term issuer and senior unsecured issue credit ratings on both companies.

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