Saturday, October 04, 2008 11:54:47 PM
Wednesday August 27, 2:21 pm ET
S&P lowers debt rating for Canadian soft drink company Cott, keeps it on CreditWatch
TORONTO (AP) -- Standard & Poor's rating agency on Wednesday downgraded its debt rating on Canadian soft drink company Cott Corp. further into junk status and kept the company on watch for possible further downgrades.
ADVERTISEMENT
The company's long-term credit rating was lowered to "B-" from "B." A rating of "B" means the debtor has the ability to repay but that adverse conditions would likely hurt that ability.
Its ratings remain on watch with negative implications. They have been on watch since Feb. 26.
"The downgrade follows Cott's announcement of substantially weaker adjusted operating profit expected for 2008, compared with the company's previous guidance," S&P credit analyst Lori Harris said in a statement.
On Tuesday, Cott lowered its outlook for its 2008 operating profit and retracted its previous guidance for 2009 profit. The company said North American sales are declining faster than expected and packaging costs are rising by more than anticipated.
Shares fell 16 cents, or 7.8 percent, to $1.90 in afternoon trading Wednesday, continuing Tuesday's losses.
Avant Technologies Equipping AI-Managed Data Center with High Performance Computing Systems • AVAI • May 10, 2024 8:00 AM
VAYK Discloses Strategic Conversation on Potential Acquisition of $4 Million Home Service Business • VAYK • May 9, 2024 9:00 AM
Bantec's Howco Awarded $4.19 Million Dollar U.S. Department of Defense Contract • BANT • May 8, 2024 10:00 AM
Element79 Gold Corp Successfully Closes Maverick Springs Option Agreement • ELEM • May 8, 2024 9:05 AM
Kona Gold Beverages, Inc. Achieves April Revenues Exceeding $586,000 • KGKG • May 8, 2024 8:30 AM
Epazz plans to spin off Galaxy Batteries Inc. • EPAZ • May 8, 2024 7:05 AM