On Feb. 26, 2008, Standard&Poor's Ratings Services placed its 'B' long-term corporate credit and 'CCC+' subordinated debt ratings on Toronto-based beverage manufacturer Cott Corp. on CreditWatch with negative implications. The CreditWatch listing follows Cott's announcement that ongoing negotiations with Wal-Mart Stores Inc. (AA/Stable/A-1+) could result in a reduction of shelf space and merchandising support for its private label carbonated soft drinks (CSD) in the U.S., including Sam's Choice. Wal-Mart is Cott's most important customer, representing about 40% of Cott's total revenues. The company provides private label CSD and water to Wal-Mart; however, CSD is its most important product line. Standard&Poor's is concerned about a potential significant volume reduction and its impact on Cott's profitability, which is
