Cott Corp. (COT)

[BooDog]

S&P ratings agency lowers debt rating on Cott
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.

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.