Coca-Cola Co.'s Proposed Senior Unsecured Notes Rated 'A+'

NEW YORK (S&P Global Ratings) August 7, 2024--S&P Global Ratings today assigned its 'A+' issue-level rating to Atlanta-based Coca-Cola Co.'s (Coke) proposed U.S. dollar-denominated senior unsecured notes due in 2034 and 2055 (final amounts to be determined). All our ratings on Coke, including our 'A+' long-term issuer credit rating, are unchanged. The outlook is stable. The notes will rank equally with the company's existing senior unsecured notes. Coke intends to use the net proceeds for working capital, capital expenditure, acquisitions, investments in the business, debt repayment, and potential payments in connection with a $6 billion tax liability decision against the company by the U.S. Tax Court. The company will pay the liability and plans to appeal the decision. We view

...August 7, 2024 NEW YORK (S&P Global Ratings) August 7, 2024--S&P Global Ratings today assigned its 'A+' issue-level rating to Atlanta-based Coca-Cola Co.'s (Coke) proposed U.S. dollar-denominated senior unsecured notes due in 2034 and 2055 (final amounts to be determined). All our ratings on Coke, including our 'A+' long-term issuer credit rating, are unchanged. The outlook is stable. The notes will rank equally with the company's existing senior unsecured notes. Coke intends to use the net proceeds for working capital, capital expenditure, acquisitions, investments in the business, debt repayment, and potential payments in connection with a $6 billion tax liability decision against the company by the U.S. Tax Court. The company will pay the liability and plans to appeal the decision. We view the contemplated note offerings as modesty leveraging with a pro forma leverage of 2.8x after the $6 billion liability payment. This compares with our estimated S&P Global Ratings-adjusted leverage...

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