S&P: Brown-Forman notes A-

Standard & Poor’s said it assigned an A- rating to Brown-Forman Corp.’s proposed senior unsecured notes due 2045, the final issue amount and coupon to be determined.

The company is expected to use the net proceeds for general corporate purposes, S&P said.

Brown-Forman’s business benefits from its strong brand recognition and geographic diversity with sales outside of the United States accounting for nearly 60% of gross revenues in fiscal 2015, the agency said.

Still, S&P said it believes product concentration risk exists with leading brand Jack Daniel’s continuing to account for the majority of gross sales and profitability.

But the company’s key financial ratios will remain on the weaker end of modest over the next one- to two-years as a result of financial policies, the agency said.

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