Coca-Cola Içecek (CCI) Pakistan's main shareholder, Coca Cola Içecek, Turkey, has received an upgraded credit rating of 'BBB' from Fitch Ratings-one of the big three credit rating agencies of the World.
The upgrade in investment grade rating for CCI to 'BBB' from its earlier rating of 'BBB-' is due to the company's higher standing/score in three major grading components-the Long Term Foreign Currency Rating (FCR), Issuer Default Rating (IDR), and Senior Unsecured Rating (SUR). As a result of the periodical review from Fitch Ratings, the Long-Term Local Currency Rating (LCR) of CCI has also been affirmed as 'BBB'. The upgrade underscores that the company's IDR outlooks are stable.
It may be mentioned that the CCI's rating of BBB is highest amongst all Turkish companies, which is also now two-notches above the country's sovereign rating, and one-notch above the Country Ceiling. Commenting on the development, Burak Basarir, CEO CCI said, "This upgrade of our credit rating indicates that our efforts to create long-term and sustainable value are delivering positive results". He further said that as the interest of the foreign investors and trust in CCI increases, we will continue to utilize our potential for the growth and development of Turkey.
The rating upgrade announcement from the Fitch Ratings has stated, "The Long-Term FC and LC IDRs have been taken up one notch up to reflect the operational and strategic relationship with The Coca-Cola Company and Fitch's view of diminished transfer and convertibility risks. The 'BBB' IDRs reflect CCI's solid industry operating profile, the quality of its brand portfolio, growth capability in Turkey and the Middle East, and its consistent history of pricing power and profit margin stability through various economic cycles."-PR
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