Tampa-based Cott Corp. announced that it has entered into a definitive merger agreement to acquire DSS Group Inc. (parent of DS Services of America Inc.) for about US$1.25 billion. Upon completion, the proposed acquisition will increase Cott's debt obligations, which would materially weaken the company's credit protection measures. As a result, we are placing our ratings on Cott, including the 'B+' long-term corporate credit rating, on CreditWatch with negative implications. At the same time, we are placing our 'B-' issue-level rating on DS Services of America's senior secured notes on CreditWatch with positive implications. On Nov. 6, 2014, Standard&Poor's Ratings Services placed its ratings, including its 'B+' long-term corporate credit rating, on Tampa-based Cott Corp. on CreditWatch with
