S&P ups Coca-Cola Consolidated view to positive

S&P said it revised its outlook for Coca-Cola Consolidated Inc. to positive from stable and affirmed all its ratings, including the BBB issuer rating.

“After a strong performance in 2020 that benefitted from better-than-expected organic growth rates at retail and a nearly 200 basis point (bps) year-over-year increase in its EBITDA margin stemming from the combination of a shift in its product mix toward its higher-margin offerings (sparkling and still), lower costs, and better economies of scale, CCCI generated record free operating cash flow (FOCF) of $292 million,” S&P said in a press release.

The agency noted the company used about $90 million to repay debt and is committed to repaying its debt.

“The positive outlook reflects the possibility that we will raise our rating on the company to BBB+ if it sustains leverage of closer to 2x over the next 18-24 months,” S&P said.

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