The ratings on Australian-based soft-drinks and food producer Coca-Cola Amatil Ltd. (CCA) incorporate a level of implied support from the company's 29.6 %-major shareholder, The Coca-Cola Co. (TCCC; A+/Stable/A-1), due to our view of CCA's strategic importance to TCCC as one of the most profitable bottlers in the global Coke system. Furthermore, the company's credit quality is supported by our opinion of CCA's leading market position in TCCC franchise territories. These factors are tempered by CCA's exposure to volatile raw material costs, developing Asian markets (primarily Indonesia), and the potential challenges associated with its diversification away from traditional soft-drinks products. With 555.1 million unit cases in 2009, the company accounts for a reasonably modest 3% of TCCC's worldwide volume. Despite...
Companies mentioned in this report are: Coca-Cola Amatil Ltd.
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