CRIF Ratings affirms Campari’s “BBB-” unsolicited long term issuer rating Outlook revised to “Positive”

CRIF Ratings has affirmed Davide Campari-Milano S.p.A.’s ‘BBB-’ long term issuer rating. The outlook has been changed to ‘Positive’ from ‘Stable’. The rating is assigned by CRIF on an unsolicited basis, without the participation of the rated entity and relying only on publicly available information. Davide Campari-Milano S.p.A. (‘Campari’ or ‘Group’) is the sixth global spirits producer with a turnover of EUR 1.8bn in FY17.

The rating reflects the Group’s resilient operating performances and solid business profile, underpinned by a strong geographical diversification and wide portfolio of well-known spirit brands, and the sustainable credit metrics, in line with CRIF Ratings’ expectations.

The Positive Outlook reflects CRIF Ratings’ expectations of Campari’s ability to further reduce the net leverage below 2x and 2.5x on EBITDA and FFO basis respectively already in FY18. The deleverage will be supported by the expected positive free cash flow generation and by the cash proceeds of the Lemonsoda business disposal (EUR 80m).

The Agency anticipates a low single-digit top line organic growth and a slight EBITDA margin improvement over the coming 12-24 months, reflecting the portfolio streamlining and its shifting towards premium brands.

Read Campari’s rating.