Fitch: Brown-Forman view to stable

Fitch Ratings said it affirmed Brown-Forman Corp.’s ratings, including the long-term issuer default rating at A and short-term issuer default rating at F1.

The outlook was revised to stable from negative.

Fitch said the affirmation and outlook revision reflect an improving financial profile due to expectations for declined leverage, a more balanced capital allocation policy and better operating performance that should push higher profitability and increased EBITDA generation.

“Brown-Forman is experiencing good growth across its premium positioned spirits portfolio that is supported by a recovery in emerging market regions. A good innovation pipeline including the anticipated launch of Jack Daniels Tennessee Rye and a cost efficiency program to increase investment behind the brands should help offset growing competition in the U.S. craft whiskey category,” Fitch said in a news release.

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