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Fitch Rates CCE's Senior Notes Offering 'A'; Outlook Stable

^{Published on 2009-02-17 14:12:22, Last Modified on 2009-02-17 14:13:10 - Market Wire}
 

CHICAGO--([ BUSINESS WIRE ])--Fitch Ratings has assigned an 'A' rating to Coca-Cola Enterprises, Inc.'s (NYSE: CCE) issuances of $350 million 3.750% senior unsecured notes due March 1, 2012 and $250 million 4.250% senior unsecured notes due March 1, 2015. The notes will rank pari passu with CCE's other senior debt. Fitch expects the company to use the net proceeds to repay current maturities of long-term debt. The notes are being issued under the company's existing indenture dated Aug. 1, 2008. Significant covenants include, but are not limited to, limitations on liens and restrictions on sale-leaseback transactions. The Rating Outlook is Stable.

At Dec. 31, 2008, CCE's total debt was approximately $9.0 billion, of which $1.8 billion was short-term. Fitch's ratings for CCE and its subsidiaries are as follows:

Coca-Cola Enterprises Inc.

--Long-term Issuer Default Rating (IDR) 'A';

--Bank credit facility 'A';

--Senior unsecured debt 'A';

--Short-term IDR 'F1';

--Commercial paper (CP) 'F1'.

Coca-Cola Enterprises Finance LT 1 Commandite S.C.A.

--Long-term IDR 'A';

--Senior unsecured debt 'A'.

Bottling Holdings (Luxembourg) Commandite S.C.A.:

--Short-term IDR 'F1';

--CP 'F1'.

For the year ended Dec. 31, 2008, CCE's credit statistics were in line with Fitch's expectations. Total debt-to-operating earnings before interest, taxes, depreciation and amortization (EBITDA) was approximately 3.8 times (x) and operating EBITDA-to-gross interest expense was about 4.0x. While CCE's credit metrics are weaker than similarly rated food and beverage companies, the company's ratings reflect the credit metrics of the Coca-Cola system and CCE's relative importance in the system, which comprises The Coca-Cola Company (IDR: 'A+') and its significant, strategic bottlers, such as CCE.

For further information, please review Fitch's press release, 'Fitch 2009 U.S. Beverage Outlook: Volumes Likely to Remain Challenged in 2009,' dated Nov. 18, 2008, available at [ www.fitchratings.com ].

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, [ www.fitchratings.com ]. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.