Fitch rates Coca-Cola notes A+

Fitch Ratings said it assigned an A+ rating to the Coca-Cola Co.'s issuance of five- and 10-year senior notes.

The outlook is negative.

The notes will be issued by Coca-Cola and will rank equally with the company's senior unsecured obligations, Fitch said.

The proceeds will be used to purchase any notes accepted in Coca-Cola's tender offer, pay any consent payments and general corporate purposes, the agency said.

Coca-Cola has a long-term issuer default rating of A+, long-term issuer default rating of A+, bank credit facilities rating of A+, senior unsecured debt rating of A+, short-term issuer default rating of F1 and commercial-paper rating F1.

Coca-Cola Refreshments USA, Inc. and Coca-Cola Refreshments Canada, Ltd. has a long-term issuer default rating of A+ and senior unsecured debt rating of A+.

Fitch said it believes Coca-Cola will make substantial progress during the next 2+ years with reducing leverage and adhering to a more balanced capital allocation strategy that should yield material improvements to Coca-Cola's long-term capital structure as the company transitions to a franchising model.

The agency said it believes Coca-Cola would benefit materially from corporate tax reform that could provide significant flexibility for the company to repatriate overseas cash that could accelerate gross debt repayment.

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