NY -- Standard&Poor's CreditWire 5/14/96 -- Standard&Poor's today has lowered its corporate credit rating of Cott Corp. to double-`B'-minus from double-`B' and its senior unsecured debt rating of the company to single- `B'-plus from double-`B'-minus. Standard&Poor's has removed the ratings from CreditWatch, where they were placed Nov. 21, 1995. Rated debt affected totals C$223 million. The downgrade reflects Cott's recent operating performance, falling far below expectations, as well as its negative cash flow, after capital expenditures. The rating also incorporates declining, but modest, growth prospects for the private label industry. Ontario-based Cott's rapid sales growth created an expensive cost structure and extremely complex operating conditions. Ineffective inventory management practices resulted in higher-than-expected operating costs.
