Fitch Ratings downgraded Coca-Cola Co.’s rating to A from A-plus on Friday, after the company unveiled long-term financial targets that signaled that additional debt reduction is not a company priority. Coca-Cola is targeting a net debt leverage ratio of 2.0 times to 2.5 times, using $7 billion of offshore cash to pay down debt, a $4.6 billion tax on accumulated foreign earnings, share repurchases of up to $1 billion in 2018 and a long-term dividend pay-out ratio of 75%. “The ratings downgrade reflects materially higher net leverage compared to Fitch’s previous expectations,” the agency said in a statement. Fitch also views the new targets as providing the company with the means to pursue bolt-on acquisitions to broaden its beverage portfolio, while continue to reward shareholders with dividends and share buybacks. Shares were up 0.5% Friday, and have gained 5% in the last 12 months, while the Dow Jones Industrial Average has gained 20% and the S&P 500 has gained 15%.
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