ThaiBev's rating downgraded on higher debt level
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Moody's Investors Service on Tuesday downgraded Thai Beverage (ThaiBev) issuer rating to Baa3 from Baa2, due to the higher debt level following the acquisition of Singapore's Fraser & Neave (F&N).
The rating outlook is stable.
In a statement, Moody's said the downgrade reflects the view of a more aggressive risk appetite evidenced by the company's debt-funded acquisition of a 28.61 per cent stake in F&N and execution risks associated with international expansion through its collaboration with F&N.
Moody's put the rating under review in July 2012, after ThaiBev announced the plan to acquire a minority stake in F&N, a pan-Asian consumer group engaged in food and beverages, properties, and publishing and printing.
