Correct: Fitch Affs 'BBB-' Int'l Rtg Of Coca-Cola Embonor; Dwngrs National Scale Rtg to 'A- Chl'.

Business Editors

CHICAGO--(BUSINESS WIRE)--Jan. 22, 2004

(In a press release issued yesterday, in the third paragraph, EBITDA to total debt ratio should have been total debt to EBITDA ratio. The amended press release follows.)

Fitch Ratings-Chicago-January 21, 2004: Fitch Ratings has affirmed the 'BBB-' foreign and local international currency credit ratings of Coca-Cola Embonor (Embonor). Approximately $160 million of notes due in 2006 are affected by this rating action. The Rating Outlook for Embonor's international ratings remains Stable.

In conjunction with this rating action, Fitch has downgraded Embonor's national scale rating to 'A- (Chl)' from 'A (Chl)'. The series B ($40 million) Chilean peso denominated bonds are affected by this rating action.

These rating actions follow the announcement by Embonor that it has reached an agreement to sell its 60.45% stake in the Peruvian bottler of Coca-Cola products, Embotelladora Latinoamericana S.A. (ELSA), to Corporacion Jose R. Lindley S.A. (JRL) for $130 million. Proceeds from the sale of the company's stake in ELSA are expected to be used to reduce outstanding debt of Embonor to slightly less than $200 million from $305 million. On a pro forma basis, which accounts for the debt reduction plus the loss of cash operating profits (EBITDA) from Peru, this would improve the company's EBITDA-to-total debt ratio to about 4.2x from approximately 5.3x during 2003. Net debt-to-EBITDA would also improve to about 4.1x from 5x.

While the sale of the company's operations in Peru positively affects Embonor's credit protection measures, Fitch views this transaction to be slightly negative in terms of the company's overall credit quality because it diminishes the strategic importance of the company to The Coca-Cola Company (KO or Coca-Cola). Fitch Ratings believes, however, that KO, which paid approximately US$300 million to acquire a 45.5% economic stake in Embonor, would provide financial support to the company if needed to preserve its reputation for supporting bottlers in which it has a significant economic stake. Absent Coca-Cola's large ownership stake in the company, it is likely the international bonds would be rated below investment grade given the pro forma credit measurements.

The investment grade credit ratings also take into consideration Embonor's relatively strong business position in its Chilean and Bolivian territories. The company had market shares of approximately 58.4% and 53.3% in these markets during 2003. Embonor accounts for approximately 35% of KO's sales in Chile and approximately 95% of its sales in Bolivia.

The slight weakening of the overall credit quality in Fitch's opinion has resulted in a downgrade of the company's national scale rating to 'A- Chl' from 'A Chl' given the more robust nature of the national rating scale, in which the top-tiered Chilean corporates are rated between 'AAA' and 'A-'.

ELSA accounted for 95% of Coca-Cola's sales in Peru during 2002. KO has shown significant interest in improving its position in Peru since 1999 when it purchased a 20% stake in JRL, the largest bottler of Inca Cola, which is the second most popular soft drink in Peru. At the time KO purchased its stake in JRL, it also formed a strategic partnership with Inca Kola. The agreement between Coca-Cola and Inca Kola requires the partnership to distribute and market Inca Kola and its affiliated brands in Peru, and calls for The Coca-Cola Company to distribute and market these brands globally. In conjunction with this agreement, KO purchased a 50% stake in Inca Kola's brands.