S&P Global gives U.S. soft drinks giant Keurig Dr Pepper a negative credit outlook after $18 billion deal to buy JDE Peet’s. Post-deal leverage expected to rise mid-to-high 5x range, above previous 4x. Keurig plans to split merged entity into two separate U.S. companies – one for coffee operations, one for other beverages. Analysts predict downgrade to BBB- grade before deal’s closing.

S&P analysts anticipate Keurig will lower leverage back to low 4x range within two years post-merger, prioritizing debt repayment, profit growth, and synergy realization. Company expected to strengthen credit metrics significantly. Deal with JDE Peet’s offers 20% premium to closing market price on Friday. Keurig focused on long-term financial health.

Read more at Yahoo Finance: S&P puts Keurig Dr Pepper on negative credit watch