SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
December 21, 1999
THE COCA-COLA COMPANY
(Exact name of Registrant as specified in its charter)
Delaware 001-02217 58-0628465
(State or other (Commission (IRS Employer
jurisdiction File Number) Identification No.)
of incorporation)
One Coca-Cola Plaza
Atlanta, Georgia 30313
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (404)676-2121
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Item 5. Other Events
On December 21, 1999, Standard & Poor's lowered its ratings for The
Coca-Cola Company, among other entities, as described in a press
release of Standard & Poor's attached as Exhibit 99.
Item 7. Financial Statements and Exhibits
(c) Exhibits:
99 Press release of Standard & Poor's issued
December 21, 1999
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
THE COCA-COLA COMPANY
(REGISTRANT)
Date: December 21, 1999 By:/s/ Gary P. Fayard
--------------------------
Gary P. Fayard
Senior Vice President and
Chief Financial Officer
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Exhibit Index
Exhibit No.
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99 Press release of Standard & Poor's issued
December 21, 1999
EXHIBIT 99
S&P: Coke Rtgs, CCE & CCA Long-Term Rtgs Lwrd; Off Watch
NEW YORK (Standard & Poor's CreditWire) Dec. 21, 1999 --
Standard & Poor's today lowered its ratings for The Coca-Cola Co.
(Coke), as indicated in the table below. In addition, Standard &
Poor's lowered its long-term ratings for Coca-Cola Enterprises
Inc. (CCE), Coca-Cola Amatil Ltd. (CCA), Coca-Cola Amatil N.Z.
Ltd., and Coca-Cola Amatil (Australia) Pty Ltd. (see list).
These ratings are removed from CreditWatch, where they were
placed with negative implications Sept. 9, 1999, following Coke's
announcement that its third-quarter earnings were expected to
fall below earlier expectations. In its Sept. 9 press release,
Standard & Poor's indicated its expectation that recovery of
already weakened credit measures for the Coke system would be
slower than anticipated.
The short-term ratings for CCE, CCA, and related entities
were affirmed, as listed below. These ratings were not
previously on CreditWatch.
About $6.3 billion of total debt was outstanding at Coke and
about $11.2 billion at CCE as of Sept. 30, 1999, and about
Australian dollar (A$) 2.9 billion of total debt was outstanding
at CCA as of July 2, 1999.
Standard & Poor's views Coke and its bottlers as a system
and analytically reconsolidates key bottlers, including CCE and
CCA, as well as Coca-Cola Beverages plc (the former European
bottling system of CCA). The Coke bottling system has been
active in pursuing acquisitions in recent periods, which has
raised consolidated debt levels. In particular, Coke's debt-
financed acquisition of the Cadbury Schweppes brands in 155
countries outside of the U.S. raised system net debt levels by
close to $1 billion, and additional Cadbury acquisitions are
still pending in several countries. Increased debt levels, along
with weaker-than-expected operating performance at Coke and its
key bottlers in 1999 due to weak global economies and European
product recalls, have weakened creditor protection measures for
the system below ranges considered appropriate for the former
ratings (these measures included pretax interest coverage in the
6.5 times (x) - 7.5x range).
Global operating performance began to show signs of
improvement in the third quarter of 1999, and the European
product recall problems appear to be largely behind Coke and its
bottlers. However, Standard & Poor's does not believe credit
measures are likely to improve to levels consistent with the
previous double-'A'-minus rating for Coke or the previous single-
'A' -plus rating for CCE and CCA over the next two years, while
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leaving enough financial flexibility for further system
acquisitions, investments, and/or share repurchases.
The ratings reflect Coke's position as the world's largest
manufacturer of soft-drink concentrates and syrups, as well as
its geographic diversification, which translates into strong
profitability and cash flow. Strong brand awareness has
contributed to Coke's leading 45% share in the more mature U.S.
market, and growth to a 51% worldwide market share. While Coke
has no legal obligation for the debt of CCE, CCA, or Coca-Cola
Beverages, Standard & Poor's ratings for CCE and CCA are based on
Coke's significant incentive to keep these bottlers viable
because of their strategic importance, Coke's ownership
positions, the size of its investments, and its unique
customer/supplier relationship.
OUTLOOK: STABLE
Standard & Poor's expects the Coke system to maintain credit
measures appropriate for the revised rating categories, despite
anticipated continued bottler consolidation, investment, and
share repurchases, -- CreditWire
RATINGS LOWERED AND REMOVED FROM CREDITWATCH
To From
Coca-Cola Co.
Corporate credit rating A+/A-1 AA-/A-1+
Senior unsecured debt A+ AA-
Shelf registration (preliminary) A+ AA-
Commercial paper A-1 A-1+
Coca-Cola Enterprises Inc. (CCE)
Long-term corporate credit rating A A+
Senior unsecured debt A A+
Shelf registration (preliminary) A A+
Coca-Cola Enterprises (Canada) Bottling
Finance Ltd.
Medium-term note program (Gtd: CCE) A A+
Coca-Cola Amatil Ltd. (CCA)
Long-term corporate credit rating A A+
Senior unsecured debt A A+
Subordinated debt A- A
Bank loan rating A A+
Coca-Cola Amatil (Australia) Pty Ltd.
Bank loan rating (Gtd: CCA) A A+
Coca-Cola Amatil N.Z. Ltd.
Senior unsecured debt A A+
RATINGS AFFIRMED
Coca-Cola Enterprises Inc.
Short-term corporate credit rating A-1
Commercial paper A-1
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Coca-Cola Amatil Ltd.
Short-term corporate credit rating A-1
Commercial paper A-1
Coca-Cola Amatil (Australia) Pty Ltd.
Commercial paper (Gtd: Coca-Cola Amatil Ltd.) A-1
Coca-Cola Amatil N.Z. Ltd.
Commercial paper (Gtd: Coca-Cola Amatil Ltd.) A-1
Contact: Nicole Delz Lynch, New York (1) 212-438-7846
Jeanette Ward, Melbourne (61) 3-9631-2075
CUSIP: 191085 191219 19122E 19122A 19122B 19121W 191216
19121D 19121E 19121F 19121A 19121B 19121C
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Copyright (c) 1999 Standard & Poor's
Received by NewsEDGE/LAN: 12/21/1999 9:33 AM
