The FINANCIAL — Fitch Ratings affirmed the ratings of Coca-Cola Enterprises Inc. (CCE) and its wholly-owned unit Coca-Cola Enterprises Finance LT 1 Commandite, formerly known as Bottling Investments (Luxembourg) Commandite S.C.A.
Furthermore, Fitch has assigned a short-term issuer default rating of 'F1' to Bottling Holdings (Luxembourg) Commandite S.C.A. (BHL), also an indirect wholly-owned unit of CCE.
Fitch has additionally assigned an 'F1' rating to Coca-Cola Enterprises Inc. (nyse: CCE – news – people )'s $1.5 billion Global Commercial Paper Program.
The rating outlook remains stable.
The affirmation reflects CCE's continued importance within the Coca-Cola (nyse: KO – news – people ) bottling system, its ongoing debt reduction and its strengthening non-carbonated beverage line-up, the agency said.
Given the prominence of carbonated soft drinks (CSDs) in CCE's beverage portfolio, the ratings acknowledge the declining CSD volumes in the United States and modest CSD growth in CCE's European territories.
'Despite a difficult commodity cost environment, which is negatively impacting the company's margins, CCE continues to generate substantial discretionary cash flow,' Fitch added.
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