S&P affirms ratings on Coke and bottlers |
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Tue, 13 Feb 2007 18:51
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NEW YORK (AP) - Credit-ratings agency Standard & Poor's Ratings Services on Tuesday said it will not change its ratings or outlooks on soda maker Coca-Cola Co. and its bottlers, Coca-Cola Enterprises Inc. and Coca-Cola Hellenic Bottling Co., after Coca-Cola Enterprises said it will cut jobs and restructure.On Tuesday, Coca-Cola Enterprises said it would cut about 3,500 jobs, or 4.7 percent of its work force, and reported a $1.7 billion loss in the fourth quarter as it recorded a $2.9 billion impairment charge.The company, and soft-drink bottlers in general, have been suffering from higher costs for commodities such as aluminum and high-fructose corn syrup and a consumer shift away from carbonated soft drinks to juices, teas and waters.S&P has the restructuring initiative will enhance standardization and consistency within Coca-Cola Enterprises operating structuring and business practices.'We believe that the currently strong consolidated system's credit measures will remain consistent with the Coke system's credit ratings, despite concerns about higher commodity costs amid weak carbonated soft drink category trends in the key North American market,' S&P said in a statement.S&P affirmed its upper-medium investment grade ratings and its stable outlook on all three companies.Coca-Cola shares rose 30 cents to $48.22, Coca-Cola Hellenic Bottling American depositary shares rose 67 cents to $39.97, and Coca-Cola Enterprise shares rose 39 cents to $20.92 during midday trading, all on the New York Stock Exchange.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Coke: Some bottlers to drop suits 