Anheuser-Busch InBev’s credit rating has been slashed to the lowest tier of investment-grade, according to Moody’s Investors Service, which warned that the company is struggling to reduce its $100bn debt load.
The credit rating firm said it lowered the brewer’s Senior Unsecured debt ratings to Baa1 from A3, putting the company three levels away from junk rating, Moody’s said on Monday.
Nigeria’s dollar scarcity is likely to continue in the foreseeable future despite recent efforts by the Central Bank of Nigeria (CBN) to make more dollars available, according to Moody’s Investors Service.
In a report released by the global rating agency on Wednesday, which it said was an “Update to the markets,” the firm said that despite recent progress in foreign exchange liquidity, dollar availability in Nigeria are unlikely to return to previous levels.
Credit rating agency Moody’s said in a report published on Monday that Diageo has a “stronger credit quality” than its rival Pernod Ricard.
Moody’s based its decision on Diageo’s lower leverage, larger size and market share, which it says supports stronger credit quality and a higher rating than its French rival Pernod Ricard.
With the myriad of macro-economic challenges facing businesses in Nigeria, particularly, the Fast Moving Consumer Goods companies (FMCG), alcoholic beverage brands and to a lesser extent non-alcoholic beverage brands will feel the pinch more with lower profits as consumers look for cheaper brands. This was the assessment of analysts at Moody’s Investors Service, a global country and market rating company.
