The ratings on Cott Corp. reflect improved profitability and credit protection measures that have benefited from strong results from the company's U.S. operations, as well as a reduction in leverage. The ratings also reflect material exposure to a few key accounts and somewhat constrained liquidity. These risks are only partially offset by Cott's leading global position in retailer-branded beverages and financial parameters that are strong for the ratings category. According to Standard&Poor's Ratings Services' criteria, when secured debt accounts for a significant proportion of assets and cash flow, unsecured debt is notched down from the long-term corporate credit rating. In this case, Cott's junior-ranking subordinated notes are notched down twice from the long-term corporate credit rating. The company's
