Moody's lifts Cott outlook to positive from stable
NEW YORK (AP) — Moody's Investors Service is raising Cott's outlook to positive from stable, citing the likelihood that beverage maker's margins will continue to improve.
Moody's says Cott is looking to bolster its performance by exiting low-margin business. Better margins and reduced capital spending should also help to improve Cott's cash flow, it added.
The ratings agency maintained all of Cott's long-term ratings, including the Canadian company's corporate family credit rating and probability of default rating, which are both at "B2," or junk status.
Last month Cott — which makes soft drinks, juice and water for store-brand customers and others — reported that its second-quarter net income fell 5 percent as it shifted its focus toward improving profitability and away from boosting sales volumes.
Shares of Cott Corp. shed 8 cents to $7.73 in afternoon trading on Wednesday. Its shares are down from a 52-week high of $8.77 set on Aug. 7. They fell as low as $5.94 per share last November.