Moody's Ratings announced on Wednesday the downgrade of Brown-Forman Corporation's senior unsecured ratings to A2 from A1, while also affirming its Prime-1 commercial paper rating. The ratings outlook for the beverage company has been revised to stable from negative. The downgrade reflects Moody's expectation that Brown-Forman's credit metrics will be weaker than previously anticipated. The rating agency noted that following the debt-funded acquisition of Diplomático in January 2023, Brown-Forman's leverage increased. While the company has since reduced debt, Moody's does not anticipate further significant decreases in leverage due to the company's focus on share buybacks, including a recently announced $400 million repurchase program. Moody's projects muted EBITDA growth for Brown-Forman over the next 12-18 months.