Standard & Poor's Ratings Services said today it revised its outlook on U.K.-based brewer Scottish & Newcastle PLC (S&N) to negative from stable, due to the increased challenges the group faces in restoring its already weak financial profile. The ratings on S&N continue to reflect the group's leading position in the U.K. and French beer markets, with specific strength in the on-trade distribution channel, and its leading position in some fast-growing Eastern European markets.

The ratings are constrained, however, by S&N's strong shareholder focus and by its relatively underdeveloped premium beers sales, along with its weak financial profile. "Until the group restores its financial profile, S&N has no scope for further debt-financed acquisitions or share repurchases at the current rating level," added Mr. Allilaire. (Reuters)

19 March, 2003