S&P lifts Bacardi to stable

S&P said it revised the outlook on Bacardi Ltd. to stable from negative.

The agency also said it affirmed all of the company’s ratings, including its BBB+ long-term corporate credit rating and A-2 short-term corporate credit and commercial-paper ratings.

The outlook revision reflects an expectation that the company will sustain its improved operating performance and reduced leverage, including maintaining a debt-to-EBITDA ratio of less than 2.5x, S&P said.

The company has a better chance of improving earnings and leverage because it is making strides on its strategic initiatives, the agency said.

The company also turned around its sales performance by emphasizing better pricing and mix in its core Bacardi, Grey Goose, Dewars and Bombay brands, S&P said.

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