Fitch affirms Bepensa

Fitch Ratings said it affirmed the BBB foreign- and local-currency issuer default ratings of Bepensa SA de CV.

The outlook is stable.

Bepensa's ratings reflect the company's strong business position as Coca-Cola bottler in the Yucatan Peninsula and Dominican Republic, well-developed beverage distribution system and improved revenue diversification, the agency said.

The ratings also consider the company's participation in a favorable market characterized by high consumption of soft drinks per capita, the agency noted.

In addition, the ratings reflect the good capital structure of Bepensa with low leverage and adequate liquidity.

The ratings are constrained by the increasing pressure in raw material costs, competitive pressures of other bottlers, credit risk associated with its financial services operations, which is a riskier business than the company's core business, and the historically negative free cash flow due to important working capital requirements and capital expenditures, Fitch said.

As of March, Bepensa reported a ratio of debt to EBITDA of 1.3 times, a healthier leverage level than at the end of 2011 and 2010, the agency said.

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