The investment bank, UBS Warburg, has downgraded its ratings and price targets on soft drink corporations, Coca-Cola Co. and PepsiCo Inc., according to sources in the City.

The sources indicated that the bank had downgraded PepsiCo from "buy" to "hold" and cut its price target to $41 from $45. It was also revealed that the company had reduced its rating on Coca-Cola to "buy" from "strong buy", with a new price target of $57 against a previous target of $65.