By Yadarisa Shabong

(Reuters) -Diageo’s incoming CEO Dave Lewis, known in financial circles as “Drastic Dave” for his sweeping turnaround of businesses, will put his reputation as a cost-cutter to the test when he joins the world’s largest spirits maker in January with the challenge of lowering its debt and reigniting sales.

The maker of Johnnie Walker whisky appointed former Tesco boss Lewis as its CEO on Monday, turning to an outsider to revive growth during a challenging period.

With Diageo’s net debt standing at around 3.4 times EBITDA as of June, investors and analysts expect Lewis to prioritize cost reductions and asset disposals to shore up the balance sheet. In September, Fitch Ratings changed Diageo’s credit rating outlook to “negative”, a prelude to a possible downgrade.

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