DBRS Releases Report on Coca-Cola Company; Maintains Under Review-Negative

DBRS has today released a report on The Coca-Cola Company (CCC or the Company) that maintains the status of the Company’s AA (low) long-term and R-1 (middle) short-term ratings, which were placed Under Review with Negative Implications on February 25, 2010, (see DBRS’s press release dated February 25, 2010 for further details). The review was initiated after the Company announced that it plans to acquire the North American bottling business of Coca-Cola Enterprises Inc. DBRS believes that although the proposed transaction will lead to a significantly weaker financial profile at CCC, the acquisition will generate operational and system synergies that could increase the Company’s growth rate and cash flow on a pro-forma basis over time and lead to a modest improvement in its business profile. Going forward, however, debt repayments will be large for CCC and it is currently unclear what the Company’s future financial targets will be. Until the transaction closes and DBRS obtains additional information, the ratings remain Under Review with Negative Implications.

To obtain a copy of the report, or the February 25, 2010, press release, please click on the links below or contact us at info@dbrs.com.