Fitch Affirms Coca-Cola Enterprises at 'A'; Outlook Stable.CHICAGO -- Fitch Ratings affirms the following ratings for Coca Cola Enterprises (CCE CCE Cornell Cooperative Extension CCE Corporate and Continuing Education CCE Coca-Cola Enterprises Inc. CCE Commission de Coopération Environnementale CCE Centre for Continuing Education CCE College of Continuing Education CCE Certified Computer Examiner ): -- Issuer default rating 'A'; -- Senior unsecured debentures 'A'; -- Medium-term notes 'A'; -- Commercial paper ratings 'F1'. Fitch also assigns an 'A' rating to the company's $2.5 billion senior unsecured credit facility and EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 900 million Eurobond offering. Approximately, $10.5 billion of debt at Dec. 20, 2005, is affected by this rating action. The Rating Outlook is Stable. On Dec. 13, 2005, CCE commenced tender offers for its $300 million 7.125% notes due Sept. 30, 2009 and $550 million 6.125% notes due Aug. 15, 2011. The respective purchase price is 30 and 45 basis points over comparable Treasuries. Proceeds of the Eurobond offering will be used to refinance the tendered debt and/or commercial paper. The credit ratings for CCE reflect its integral position as the largest bottler in the Coca-Cola system; its significant debt balance, which comprise approximately 40% of system-wide debt; and its operating performance and credit measures as a stand-alone entity. The ratings also reflect CCE's gradual decline in leverage and the competitive nature of the mature carbonated soft drink beverage industry. The company's total debt-to-operating earnings before interest taxes depreciation and amortization Noun 1. Earnings Before Interest Taxes Depreciation and Amortization - income before interest and taxes and depreciation and amortization have been subtracted; an indicator of a company's profitability that is watched by investors (especially in leveraged buyouts) (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) for the latest 12 months ended Sept. 30, 2005 was 4.1 times (x); operating EBITDA-to-gross interest expense was 4.1x; and cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses as a percentage of total debt was 16.0%. CCE's ratings are also based upon its relationship with The Coca Cola Company (TCCC TCCC The Coca Cola Company TCCC Tri-County Community College (North Carolina) TCCC Technical Committee on Computer Communications (IEEE Communications Society) ) which includes the implicit support of TCCC, the extent of which is evident through its reliance on CCE as the largest bottler in the Coca-Cola system, its 36% ownership interest in CCE, and the long history of supporting its brands. Fitch calculates credit measures for the Coca-Cola system by aggregating the financial results of TCCC and certain significant and/or strategic bottlers. Fitch rates TCCC's senior unsecured notes 'A+' and its commercial paper 'F1'. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. 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 Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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