Moody’s Ratings has affirmed the Baa3 senior unsecured notes and Prime-3 commercial paper ratings of Bacardi Ltd and its Dutch subsidiary, Bacardi-Martini BV, with a stable outlook, the agency announced this week.

The affirmation points to the company’s strong global brand portfolio and “good financial health and market position within the spirits industry”, Moody’s said. The rating reflects Bacardi’s performance in maintaining profitability, healthy operating margins and a diversified line-up of more than 200 brands, including Patrón, Dewar’s, Grey Goose and Martini.

Moody’s noted that Bacardi’s “focus on premium spirits” boosts profits but increases exposure to the American market and its economic cycles. “Increased pricing has slowed demand for more premium products,” the report stated, adding that Bacardi is also facing “volume headwinds” in North America and slower-growing categories such as vodka and gin.

Moody’s said Bacardi’s concentration in the American market makes it vulnerable to economic downturns and regulatory changes such as tariffs. The agency also cited volume risks tied to health and wellness trends including reduced alcohol consumption among younger consumers. The company also has limited access to public equity markets because of its private ownership, which may make it less flexible if Bacardi pursues large, debt-financed acquisitions, according to Moody’s.

Founded in Cuba in 1862 and headquartered in Bermuda since 1965, Bacardi remains the largest privately held international spirits company in the world. In the fiscal year ending March, Bacardi reported $5.3 billion in net revenue, with debt-to-ebitda (earnings before interest, taxes, depreciation and amortisation) leverage at 4.1x, slightly above Moody’s target. However, Moody’s expects leverage to drop below 4.0x in the next 12 months.

“While Bacardi’s focus on the premium and super-premium spirits segments … could expose it to pressure in a severe economic downturn,” Moody’s stated, “we believe the long-term premiumisation trend remains intact.”

The stable outlook also reflects Bacardi’s “commitment to maintaining an investment-grade rating and good liquidity”, including plans to address a July 2026 bond maturity.