Moody’s Investors Service has upgraded Canadian soft drink maker Cott Corp’s credit rating on the strength of its recent operating performance.

Last month, Cott announced that it had swung to full-year profit in 2009 and said it expects to win more new business in 2010. Profits for the 12-month period amounted to US$81.5m, compared to a loss of $122.8m in 2008.

Earlier this week, US analyst Moody’s subsequently revised its outlook to positive, lifting the firm’s rating to B2 from B3.

Moody’s said Cott has been focusing on generating cash and debt reduction, and noted the success of its 2009 capital market transactions and its enhanced liquidity position.

Analyst Brian Grieser wrote: “While the beneficial pricing dynamics that supported Cott’s performance in 2009 will diminish in the first half of 2010, as national brands may lower prices to regain share, the strength of Cott’s balance sheet and liquidity profile is expected to cushion the impact of any near-term operational weakness.”

Grieser added that continued ratings progress will be dependent on Cott’s ability to sustain a “strong operational performance in more competitive pricing environment”, given its “historical sensitivity” to pricing actions of national brands

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

Cott’s shares rose $0.15, or 2%, to $8.12 in afternoon trading on Wednesday.

Subscribe to Just Drinks for just £1 for 1 month

Stay ahead with unbiased news, expert commentary, and in-depth features on global topics.

As a trusted provider of data and insights, Just Drinks collaborates closely with industry leaders and professionals to offer unique thought leadership and analysis. Gain a deeper understanding of the apparel industry’s trajectory and the priorities shaping the profession.

What’s included in your subscription:
  • Personalized Access: Secure login to Just Drinks
  • Industry News & Expert Commentary: Timely updates and exclusive C-level interviews.
  • Case Studies & Deep Dives: Real-world applications and in-depth analyses.
  • Exclusive Subscriber Newsletter: Weekly top features, plus a new thematic report and webinar.

Ready to stay informed?

Subscribe to unlock exclusive content.

Already a subscriber? Sign in to access your account.

Just Drinks Excellence Awards - Have you nominated?

Nominations are now open for the prestigious Just Drinks Excellence Awards - one of the industry's most recognised programmes celebrating innovation, leadership, and impact. This is your chance to showcase your achievements, highlight industry advancements, and gain global recognition. Don't miss the opportunity to be honoured among the best - submit your nomination today!

Nominate Now