S&P Puts Green Mountain (GMCR) on CreditWatch Positive Following Coca-Cola Deal
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Standard & Poor's Ratings Services today placed its 'BB-' corporate credit rating and issue-level ratings on Waterbury, Vt.-based Green Mountain Coffee Roasters Inc. (Nasdaq: GMCR) on CreditWatch with positive implications, meaning that we could either raise or affirm the ratings upon completion of our review.
"The CreditWatch placement follows GMCR's announcement that it has entered into a strategic collaboration agreement with The Coca-Cola Company to jointly develop and market Coca-Cola products for use in the company's new cold beverage system to be launched during GMCR's calendar 2015," said Standard & Poor's credit analyst Bea Chiem.
We believe that this partnership with Coca-Cola, a global partner with leading shares in the liquid refreshment beverage category, will improve our assessment of GMCR's business risk profile because it will result in greater product and geographic diversity and improved competitive advantage with participation in new and larger carbonated soft drink and cold beverage categories. We will seek to resolve the CreditWatch listing following our review of the potential impact on the company's business risk as a result of this new partnership.
"The CreditWatch placement follows GMCR's announcement that it has entered into a strategic collaboration agreement with The Coca-Cola Company to jointly develop and market Coca-Cola products for use in the company's new cold beverage system to be launched during GMCR's calendar 2015," said Standard & Poor's credit analyst Bea Chiem.
We believe that this partnership with Coca-Cola, a global partner with leading shares in the liquid refreshment beverage category, will improve our assessment of GMCR's business risk profile because it will result in greater product and geographic diversity and improved competitive advantage with participation in new and larger carbonated soft drink and cold beverage categories. We will seek to resolve the CreditWatch listing following our review of the potential impact on the company's business risk as a result of this new partnership.
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