S&P has raised AmBev’s credit rating to BBB+ from BBB, it says, based on the brewer’s ability to maintain consistent results through difficult economic cycles. The outlook is stable. “The upgrade reflects the company's capacity to sustain, and even improve profitability amid a challenging operating environment in most of its markets during 2009, resulting in much stronger-than-expected credit metrics,” the agency says. It highlights that the Brazilian brewer should end 2009 with an expected funds-from-operations to total-debt ratio of 90%, compared to S&P’s original projection of 60%. Integration with its parent, Anheuser-Busch InBev, is also positive. S&P notes ratings are somewhat constrained by AmBev’s dependence on cash flows generated in Brazil and increasing country risks in some of its important markets; its historical aggressiveness in maximizing returns to shareholders, including large annual dividends and recurrent share-buyback programs; and potential volatility in credit metrics given its exposure to commodity and exchange-rate fluctuations.