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Greece Exit Hurts Coca-Cola Hellenic’s Debt

Investors fret cost of move will mean more debt, ratings downgrade.

By Hannah Benjamin, Bloomberg | Updated on November 23, 2012

Coca-Cola Hellenic Bottling Co. SA bondholders are losing confidence in the firm’s plan to leave Greece on concern the cost of the move will trigger a credit-rating downgrade for the nation’s biggest company.

The extra yield investors demand to own Coca-Cola Hellenic’s most-traded notes over the safest government debt plunged one percentage point on Oct. 12, the day after the company said it planned to move its headquarters to Switzerland. Since then, the spread on the 4.25 percent bond due 2016 has widened by 0.61 percentage point to 232 basis points.

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