The Coca-Cola Co.'s Proposed Senior Unsecured Notes Rated 'A+'

CHICAGO (S&P Global Ratings) Sept. 4, 2019--S&P Global Ratings today assigned its 'A+' issue-level rating to Atlanta-based The Coca-Cola Co.'s (Coke) proposed senior unsecured notes due in 2024 and 2029. The company is drawing these notes under its shelf registration dated May 22, 2017. Net proceeds will be used for general corporate purposes, including debt repayment, though initially the net proceeds may be invested in short-term marketable securities. The company's business strength is underpinned by its very strong position as the world's largest nonalcoholic beverage company, anchored by well-known brands, good innovation and portfolio mix management, and above-average EBITDA margins. We believe this clearly outweighs Coke's narrow focus on nonalcoholic ready-to-drink beverages. Coke's financial flexibility over the next year is

...September 4, 2019 CHICAGO (S&P Global Ratings) Sept. 4, 2019--S&P Global Ratings today assigned its 'A+' issue-level rating to Atlanta-based The Coca-Cola Co.'s (Coke) proposed senior unsecured notes due in 2024 and 2029. The company is drawing these notes under its shelf registration dated May 22, 2017. Net proceeds will be used for general corporate purposes, including debt repayment, though initially the net proceeds may be invested in short-term marketable securities. The company's business strength is underpinned by its very strong position as the world's largest nonalcoholic beverage company, anchored by well-known brands, good innovation and portfolio mix management, and above-average EBITDA margins. We believe this clearly outweighs Coke's narrow focus on nonalcoholic ready-to-drink beverages. Coke's financial flexibility over the next year is tight because of merger and acquisition activity and a large dividend. Its $5.1 billion acquisition of coffee company Costa Ltd., which closed...

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