Aug 25 (Reuters) - Ratings agency S&P Global put a

negative credit outlook on U.S. soft drinks giant Keurig Dr

Pepper ( KDP ) 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."