Moody’s gives Aa3 to Coca-Cola bonds

Moody's Investors Service said it assigned Aa3 ratings to Coca-Cola Co.'s €800 million senior unsecured regular bond/debenture due Sep 22, 2022 and €1.2 billion senior unsecured regular bond/debenture due Sep 22, 2026.

Proceeds will be used for general corporate purposes, which may include repayment of short-term debt.

All other ratings for the company remain unchanged and the outlook is stable.

Moody’s said Coca-Cola’s Aa3 rating and stable outlook reflect the system's leading position in the global carbonated soft drink industry, including its ownership of one of the most valuable consumer brands in the world, a highly diverse global operation network, a growing non-carbonated portfolio and unrivaled distribution.

These strong qualitative factors are tempered by the need for additional investments for its owned bottling operations, declining carbonated beverage consumption in certain markets and the challenges of a global macroeconomic environment, which includes slower growth in some emerging markets.

Gross system debt to EBITDA has crept up in recent years up as cash balances have been building overseas, but net leverage has remained relatively stable, Moody’s said.

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