DBRS confirms Coca-Cola

DBRS said it confirmed the senior unsecured debt rating and short-term issuer rating of Coca-Cola Co. at A (high) and R-1 (low), respectively, with stable trends.

The ratings are supported by the company's strong brand name and leading global market position, but also reflect the highly competitive nature of the industry and exposure to volatile input costs, according to the agency.

The confirmation acknowledges Coke's relatively strong operating performance over the past two years, balanced by the company's recent increases in returns to shareholders and corresponding rise in debt levels, the agency said.

Despite higher debt balances, debt-to-EBITDA ratio at the end of fiscal 2011 remained relatively flat from a year earlier at 2.36 times, DBRS said.

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