MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said its
rating and outlook on Brown-Forman Corp, rated 'A/A-1' with a negative outlook,
are not immediately affected after the company announced its board approved a
new share repurchase authorization program.
The program is to buy back up to 200 mln usd of the Louisville,
Kentucky-based drink maker's outstanding Class A and Class B common stock.
However, S&P added that Brown-Forman's ratings could be cut if credit
measures weaken due to softer operating performance, or financial policy
becomes more aggressive and debt levels rise meaningfully from current levels,
which could result from further share repurchase authorizations or future
materially-sized acquisitions.
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