DBRS Comments on Pending Sale of Cadbury’s Australia Beverages Business

DBRS notes that the ratings of Cadbury Holdings Limited (Cadbury or the Company) and its related entities are unaffected by the Company’s announcement that it intends to sell its Australia Beverages business. The Company’s Issuer Rating is BBB; Cadbury Beverages Canada Inc.’s Series A Guaranteed Notes are rated BBB and its Commercial Paper is rated R-2 (high); and Cadbury Schweppes US Finance LLC’s Guaranteed Senior Notes are rated BBB. The trends are Stable.

The decision to sell the relatively small Australian beverage business was expected and is in line with Cadbury’s strategy to become a stand-alone confectionary company. The announcement also follows the successful May 2008 de-merger of Cadbury’s Americas Beverages business.

For the 12 months ended June 30, 2008, Cadbury generated total revenue of GBP 5,420 million and operating income of GBP 533 million (before restructuring and other non-recurring items). DBRS estimates that the Australian beverage business accounts for less than 10% of Cadbury’s total revenue and operating earnings.

The Company has stated that the separation of the confectionary and beverage businesses in Australia is well underway and will provide further detail in due course.

Notes:
The applicable methodology is Consumer Products, which can be found on our website under Methodologies.

This is a Corporate rating.