DISTRESSED DAILY: Pabst Blue Ribbon Is Down But Not Out

U.S. brewer Blue Ribbon Holdings LLC, the owner of Pabst Blue Ribbon, is operating with an unsustainable capital structure, according to S&P Global Ratings.

Pabst, the iconic 178-year-old lager that experienced a hipster-led revival earlier this millennium, recently has been struggling to generate positive free cash flow and reduce leverage. The company’s costs are elevated due to adverse macroeconomic pressures, and its market share is dwindling as craft beers, hard seltzers and other drinks continue to crowd the below-premium beer category.

The credit rating company expects Pabst’s free cash flow to remain pressured, with the company projected to break ...