Fitch Affirms Coca-Cola's IDR at 'A+'; Outlook Stable

CHICAGO--(Business Wire)--
Fitch Ratings has affirmed The Coca-Cola Company's (NYSE: KO) ratings as
follows:

--Long-term Issuer Default Rating (IDR) at 'A+';

--Bank credit facility at 'A+';

--Senior unsecured debt at 'A+';

--Short-term IDR at 'F1';

--Commercial paper (CP) at 'F1'.

The Rating Outlook is Stable. This rating action affects approximately $12.2
billion of debt.

The affirmation reflects Coca-Cola's substantial cash flow generation, which is
due to its high operating margins, its leading position in the global market for
non-alcoholic ready-to-drink (NARTD) beverages, and its strengthening
non-carbonated portfolio. Given the prominence of carbonated soft drinks (CSDs)
in Coca-Cola's beverage portfolio, the ratings consider the multi-year decline
in CSD volume in the U.S. and modest CSD growth in other developed countries.
Additionally, the ratings recognize Coca-Cola's market strength in developing,
high-growth countries.

On a reported basis, Coca-Cola's first quarter net revenues were down 3% versus
the prior year period, and the company's first quarter operating income declined
1% versus the prior year period. However, Coca-Cola's reported numbers were
affected by currency translations which had a negative 17% effect on operating
income. While Fitch expects currency to continue to affect Coca-Cola's results
in 2009, these effects are expected to moderate. Although negative currency
effects will weaken Coca-Cola's credit metrics, Fitch analyzes Coca-Cola on a
currency neutral basis.

For the 12 months ended April 3, 2009, the company's credit statistics were in
line with Fitch's expectations. Total debt-to-operating earnings before
interest, taxes, depreciation and amortization (EBITDA) was approximately 1.2
times (x), and operating EBITDA-to-gross interest expense was roughly 24.8x.
Coca-Cola generated over $2 billion of free cash flow for the year ended Dec.
31, 2008. While Coca-Cola's credit profile is slightly stronger than similarly
rated food and beverage companies, Coca-Cola's ratings are reflective of the
credit metrics of the Coca-Cola system, which comprises the Coca-Cola Company
and its significant and/or strategic bottlers. The company's strong credit
metrics are counter-balanced by the more highly levered credit metrics of
Coca-Cola's bottlers.

The credit metrics of the Coca-Cola system improved from 2007 to 2008. On Dec.
31, 2008, total debt-to-operating EBITDA on an aggregated basis was 1.6x for the
Coca-Cola system. The system's Funds Flow from Operations (FFO) fixed charge
coverage on an aggregated basis was 7.1x for the year ended Dec. 31, 2008. For
the prior year, the system's total debt-to-operating EBITDA was 1.8x, and the
system's FFO fixed charge coverage was 6.8x. The modest decrease in leverage is
largely attributable to the increase in Coca-Cola's operating EBITDA from 2007
to 2008.

With approximately $2.6 billion in undrawn committed credit facilities and $4.7
billion in cash on Dec. 31, 2008, Coca-Cola has sufficient liquidity to meet its
near-term debt obligations. Coca-Cola has $465 million of debt coming due in
2009, primarily comprised of $400 million 5.75% notes due April 30, 2009.
Additionally, Coca-Cola had approximately $5.4 billion of commercial paper on
Dec. 31, 2008. Fitch expects Coca-Cola to maintain adequate coverage of its
commercial paper through committed credit facilities and cash.

The Coca-Cola Company is the largest manufacturer and marketer of non-alcoholic
beverage concentrates and syrups in the world. The company's most famous brand,
Coca-Cola, one of the world's most valuable brands, and its Diet Coke, Sprite,
and Fanta brands, are four of the five best-selling brands in the CSD beverage
category. The company owns or licenses nearly 500 brands in a variety of NARTD
categories, including water, enhanced water, juices and juice drinks, teas,
coffees, energy, and sports drinks, and its products are sold in more than 200
countries. Coca-Cola Company branded and licensed brand drinks total
approximately 1.6 billion of the estimated 54 billion worldwide beverage
servings consumed daily.

Fitch's rating definitions and the terms of use of such ratings are available on
the agency's public site, www.fitchratings.com. Published ratings, criteria and
methodologies are available from this site, at all times. Fitch's code of
conduct, confidentiality, conflicts of interest, affiliate firewall, compliance
and other relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings, Chicago
Wesley E. Moultrie II, CPA, 312-368-3186
Christopher M. Collins, 312-368-3196
Carla Norfleet-Taylor, CFA, 312-368-3195
or
Media Relations:
Cindy Stoller, 212-908-0526, New York
Email: cindy.stoller@fitchratings.com

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