Moody’s releases credit ratings for Coke, Pepsi

Moody’s, a New York-based credit rating agency, said credit for Coca-Cola Co. has stabilized but rival PepsiCo’s credit could weaken because of bids for two of its bottlers.

The ratings for both Coke and Pepsi remain a high-quality investment grade in Moody’s rating system.

Coca-Cola has a Aa3 rating with a stable outlook, Moody’s said in a report issued this week. The Atlanta-based beverage giant has slowed down acquisition activity, paid down debt and taken steps to conserve cash, the report noted.

Pepsi is rated at Aa2 and is under review for possible downgrade, the report said. Earlier this year, Pepsi said it hoped to buy Pepsi Bottling Group and PepsiAmericas, moves that would add debt.