Finance
S&P puts Keurig Dr Pepper on negative credit watch
Published by Global Banking and Finance Review
Posted on August 25, 2025
2 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on August 25, 2025
2 min readLast updated: January 22, 2026
S&P Global has placed Keurig Dr Pepper on negative credit watch following its $18 billion acquisition of JDE Peet's, citing increased debt concerns.
By Matt Tracy
(Reuters) -Ratings agency S&P Global put a negative credit outlook on U.S. soft drinks giant Keurig Dr Pepper after the company announced Monday it will buy Dutch coffee group JDE Peet's.
In a Monday note accompanying their credit outlook downturn on the popular soda seller, S&P analysts highlighted the increased debt profile of Keurig following the announcement of its $18 billion takeover of Peet's.
The analysts noted Keurig's post-deal leverage will likely lie in the mid-to-high 5x range, well above its 4x leverage at the end of June.
Keurig announced early Monday morning its agreement to buy JDE Peet's in a deal offering a 20% premium to Peet's closing market price on Friday. Keurig expects to split the merged entity into two separate publicly traded U.S. companies - a firm focused on coffee operations and a second business focused on other beverages.
S&P said it currently expects to officially downgrade Keurig's credit rating just one notch to BBB-, or the lower end of investment-grade, closer to the deal's closing date.
Analysts at S&P noted that they anticipate the combined company will lower its leverage back down to the low 4x range roughly two years after the deal closing, given their forecast it will "prioritize debt repayment, profit growth, and synergy realization such that credit metrics strengthen materially."
(Reporting by Matt Tracy; Editing by Hugh Lawson)
S&P Global placed a negative credit outlook on Keurig Dr Pepper following its announcement to acquire Dutch coffee group JDE Peet's.
Keurig Dr Pepper will take on an increased debt profile of approximately $18 billion due to the acquisition.
S&P analysts expect Keurig's post-deal leverage to lie in the mid-to-high 5x range, significantly above its previous 4x leverage.
S&P expects to downgrade Keurig's credit rating by one notch to BBB-, placing it at the lower end of the investment-grade spectrum.
S&P anticipates that the combined company will reduce its leverage back down to the low 4x range approximately two years after the deal closes.
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