Fitch rates Coca-Cola notes BBB+

Fitch Ratings said it assigned a BBB+ rating to Coca-Cola Enterprises, Inc.'s newly issued €350 million 2% senior notes due Dec. 5, 2019.

The long-term issuer default rating is BBB+.

The outlook is stable.

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

The ratings reflect the company's exclusive right to manufacture, sell and distribute Coca-Cola brand beverages within its territories in Western Europe where Coca-Cola products have the No. 1 share in non-alcoholic ready-to-drink products, the agency said.

The ratings are further supported by the company's free cash flow generation, healthy operating margins, and net debt-to-EBITDA leverage target of 2.5 times to 3.0x, Fitch said.

Uncertainty surrounding the funding of the potential acquisition of Coca-Cola Erfrischungsgetraenke AG from Coca-Cola Co. is also factored into ratings, the agency noted.

As of June 29, the company's total debt-to-operating EBITDA was 2.4x and funds from operations adjusted leverage was 3.7x. Total debt-to-operating EBITDA pro forma for the debt issuance is about 2.7x.

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