On Aug. 10, 2005, Standard&Poor's Ratings Services revised its outlook on the leading supplier of retailer-branded soft drinks Cott Corp., to negative from stable. At the same time, Standard&Poor's affirmed its 'BB' long-term corporate credit and 'B+' subordinated debt ratings on the company. The outlook revision follows Cott's recent announcement of its acquisition of 100% of the shares of U.K.-based Macaw (Holdings) Ltd., the parent company of Macaw (Soft Drinks) Ltd. for about US$135 million. The debt-financed acquisition expands Cott's presence in the U.K., resulting in the addition of US$100 million in revenue and an increased market share of the private label carbonated soft drink (CSD) market to the low 60% area from about 40% previously.
