The ratings on Mississauga, Ont.-based Cott Corp. reflect what Standard&Poor's Ratings Services views as the company's vulnerable business risk profile stemming from a narrow product portfolio, customer concentration, and small size in a sector dominated by companies with substantially greater financial resources and market presence. Furthermore, we believe Cott's improved financial performance might not be sustainable as it depends on the competitive actions of larger players, among other things. In addition, a significant reduction in business with its key customer, Wal-Mart Stores Inc. (AA/Stable/A-1+), could result in a material weakening of credit protection measures. We believe these factors are partially offset by Cott's improved operating performance and financial flexibility, as well as its market position as the leading
