Skip to main content

Moody's Investors Service affirmed Cott Corp.'s "stable" outlook, saying the company has "an acceptable level of financial flexibility" should the economy worsen. The ratings agency also placed a Caa1 rating on the beverage maker's proposed $200-million senior unsecured notes offering.

"The affirmation of Cott's ratings reflects its significant market position as world's largest retailer brand soft drink provider, strong cash flow generation, and improved debt maturity profile," Moody's said in a report.

"However, any erosion in margins and overall profitability either due to significant loss of volume that could not be replaced quickly and/or inability to manage commodity price volatility and deterioration in liquidity could warrant a negative rating action."

Story continues below advertisement

Cott, the world's largest maker of private-label soft drinks, reported profits of $13.9-million, or 18 cents a share, compared with a year-ago loss of $87.6-million, or $1.25 a share. Last year's report included $95.8-million in goodwill and other asset impairment charges.

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
Comments

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

If your comment doesn't appear immediately it has been sent to a member of our moderation team for review

Read our community guidelines here

Discussion loading…

Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.