Investing.com -- S&P Global placed Keurig Dr Pepper on a negative credit outlook watch on Monday, after the soft drinks giant announced that it will acquire Dutch coffee group JDE Peet’s for $18 billion.
The ratings agency cited concerns about Keurig’s increased debt profile in its note explaining the outlook change. S&P analysts pointed out that the company’s post-deal leverage will likely reach the mid-to-high 5x range, a significant increase from its 4x leverage reported at the end of June.
S&P indicated it expects to downgrade Keurig’s credit rating by one notch to BBB-, the lowest investment-grade level, closer to when the acquisition closes.
Despite the immediate negative outlook, S&P analysts expressed confidence that the combined company would reduce its leverage back to the low 4x range approximately two years after the deal closes. This projection is based on expectations that the company will "prioritize debt repayment, profit growth, and synergy realization such that credit metrics strengthen materially."
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Keurig Dr Pepper on negative outlook watch at S&P after JDE Peet’s deal
Published 2 months ago
Aug 25, 2025 at 3:03 PM
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