Fitch: Coca-Cola Icecek view negative

Fitch Ratings said it affirmed Coca-Cola Icecek AS' long-term local-currency issuer default rating at BBB and revised the outlook to negative from stable.

The long-term foreign-currency issuer default rating was affirmed at BB. The outlook remains stable.

The company's long-term foreign-currency issuer default rating is constrained by Turkey's country ceiling.

Fitch said the change in outlook reflects a significant increase in financial leverage in 2008 - to a level that leaves little flexibility in the current rating for additional acquisitions or further depreciation of the Turkish lira.

Adjusted net debt-to-EBITDAR ratio grew to 1.7x at Sept. 30 from 1.1x at year-end 2007.

Ratings reflect the company's strong presence in its markets, steady results in its core Turkish operations and the operational support and oversight provided by Coca-Cola Co. (A+/stable), which owns 20.1% of the company, the agency said.

These factors are balanced against significant foreign exchange exposure, weaker results from the company's international markets and ongoing expansion outside of Turkey, Fitch said.

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