S&P lowers Cott

Standard & Poor's said it lowered its ratings on Cott Corp., by one notch, including its long-term corporate credit rating, to B+ from BB-.

The outlook is negative.

The downgrade reflects the many challenges Cott faces including declining organic sales and profitability, significant senior management turnover in the past couple of years, inefficient operations, weakness in internal financial controls and participation in the difficult carbonated soft drinks industry, S&P added.

Although reported revenue increased 0.9% in 2006, organic revenue declined 4.8%, the agency said, adding that the ratings on Cott reflect its below-average 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.

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