Fitch rates Coca-Cola notes A+

Fitch Ratings said it assigned an A+ rating to Coca-Cola Co.'s $1 billion of 1.8% senior unsecured notes due 2016 and $1 billion of 3.3% notes due 2021.

The long-term issuer default rating is A+.

The outlook is stable.

Proceeds will be used to fund a cash incentive for its note exchange offer and the remainder will be used to repay commercial paper.

The company could issue an additional $1 billion of each series of notes for a total of $4 billion, subject to the results of the company's exchange offer, according to Fitch.

Ratings reflect the company's substantial cash flow generation, which is due to its high operating margins; its large cash balance; its leading position in the global market for nonalcoholic, ready-to-drink beverages; and its strengthening noncarbonated portfolio, the agency said.

Ratings also recognize Coca-Cola's market strength in developing, high-growth countries.

Ratings also consider the multiyear decline in soft drink volumes in the United States and modest growth in other developed countries, Fitch said.

For the 12 months ended July 1, Coca-Cola's total debt-to-operating EBITDA was about 2.1x.

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