Fitch rates Pepsi-Cola Metropolitan A+

Fitch Ratings said it assigned an A+ long-term issuer default rating to Pepsi-Cola Metropolitan Bottling Co., Inc. and affirmed its guaranteed bank credit facilities, senior unsecured debt and guaranteed senior notes affirmed at A+.

The ratings of parent company PepsiCo, Inc. were affirmed, including its A+ long-term issuer default, senior unsecured debt and bank credit facilities ratings and F1 short-term issuer default and commercial paper ratings.

Bottling Group, LLC's long-term issuer default rating, senior unsecured debt and guaranteed senior notes were affirmed at A+.

The A+ long-term and F1 short-term issuer default ratings of Pepsi Bottling Group, Inc. and PepsiAmericas Inc. were affirmed and withdrawn.

The outlook is stable.

When PepsiCo completed its acquisition of PepsiAmericas and Pepsi Bottling Group in February, it merged them into Pepsi-Cola Metropolitan. The senior unsecured notes of PepsiAmericas and the guaranteed senior unsecured notes of Pepsi Bottling Group were assumed by Pepsi-Cola Metropolitan. Fitch calculates pro forma leverage for PepsiCo of approximately 1.7 times on a total debt-to-operating EBITDA.

The agency said the ratings reflect PepsiCo's diverse food and beverage product mix, comprehensive geographic footprint and its ability to consistently generate substantial operating cash flow.

The ratings also consider the long-term carbonated soft drink volume decline in the United States and other developed countries and PepsiCo's large dividend and continuation of share repurchases following the completion of its mergers with its anchor bottlers, Fitch said.

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