, Columnist
Megabrew’s Megadebt Is a Megaproblem
AB InBev’s credit-rating downgrade only highlights the pain that’s to come for equity investors. Big debt-funded deals are out of the question.
They’re a lot heavier when they’re full of debt.
Photographer: Fox Photos/Hulton ArchiveThis article is for subscribers only.
AB InBev’s punishing debt load has hit home.
Moody’s Investors Service on Tuesday lowered Anheuser-Busch InBev NV’s credit rating to Baa1 from A3, after putting the grade on review for a cut in early October. This confirms that life has been getting grimmer for Megabrew since it came into existence two years ago. AB InBev has been lumbering under about $100 billion of debt, while grappling with a plunge in emerging-market currencies that has hurt profits.