HALISTER1: Jose Cuervo Raised to BBB+ by Fitch as IPO Strengthened Business

Jose Cuervo Raised to BBB+ by Fitch as IPO Strengthened Business

(Bloomberg) -- Becle upgraded one notch to BBB+ from BBB to reflect co.’s stronger financial profile and business after IPO, Fitch analysts led by Rogelio Gonzalez write in report.
  • NOTE: BBB+ is 3 notches above speculative grade
  • Upgrade also reflects merger of Proximo Spirits
  • Co. expected to use “improved financial flexibility” for acquisitions to boost geographic, product diversification
  • Ratings constrained by:
    • Co.’s revenue concentration in tequila
    • Strong competition among alcoholic beverage peers
    • Risks related to changes in U.S. trade policies
    • Agave price volatility
  • NOTE, March 29: S&P affirms its BBB rating on Becle
  • NOTE, Feb. 8: Jose Cuervo Said to Raise $790M in Biggest Mexico IPO Since 2013

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
CUERVO* MM (Becle SAB de CV)

People
Rogelio Gonzalez (Fitch Ratings Ltd)

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