DBRS Assigns Rating of BBB (low), Stable Trend, to Molson Coors Brewing Company’s New Debt Issuance

DBRS Limited (DBRS) has today assigned a rating of BBB (low) with a Stable trend to Molson Coors Brewing Company’s (Molson Coors or the Company) multi-tranche debt issuance announced on March 6, 2017.

The issuance is made up of the following tranches (collectively, the Notes):
(1) $500 million, 1.900% Senior Unsecured Notes due March 15, 2019;
(2) $500 million, 2.250% Senior Unsecured Notes due March 15, 2020; and
(3) EUR 500 million Senior Floating-Rate Notes due March 15, 2019.

The Notes will be unsecured and unsubordinated obligations of the Company and will rank pari passu with its other unsecured and unsubordinated debt, including existing notes and U.S. borrowings under the Company’s credit facilities. DBRS expects Molson Coors to use the proceeds from this issuance to repay a portion of the amounts outstanding on the Company’s term loan facility.

Molson Coors’ ratings continue to be supported by the Company’s strong brands in its core markets, its improving geographic diversification and the stable nature of its earnings and cash flow. The ratings also continue to reflect the intensely competitive and mature nature of the Company’s core markets and the increase in financial leverage associated with the acquisition to acquire the 58% stake in MillerCoors that the Company does not already own.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is Rating Companies in the Consumer Products Industry, which can be found on dbrs.com under Methodologies.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.