S&P rates Coke notes BBB

Standard & Poor's said it assigned a BBB senior unsecured debt rating to Coca-Cola Enterprises, Inc.'s proposed $$400 million senior unsecured notes maturing in 2013.

The notes were issued under the company's new Rule 415 shelf registration.

The senior unsecured debt rating is one notch below the rating on the company's corporate credit rating, reflecting an opinion that debt to be issued is structurally subordinated to priority obligations at its operating entities, S&P said.

The proceeds will be used for general corporate purposes, which may include share repurchases and the refinancing of commercial paper.

The ratings reflect the company's importance to Coke's global beverage distribution network because it is the third-largest global Coke bottler following its recent split-off from Coca-Cola Enterprises Inc., the agency said.

The ratings further benefit from the new company's association with one of the world's pre-eminent consumer brands, its good local market positions, relatively stable cash flow characteristics of the nonalcoholic beverage category, S&P said, and some implied support from the Coca-Cola Co.

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