Moody's gives Coca-Cola Femsa notes A3

Moody's Investors Service said it assigned an A3 rating to Coca-Cola Femsa, SAB de CV's proposed $400 million senior unsecured notes issuance due 2020 and affirmed the company's existing A3 local currency and Aaa.mx Mexican national-scale senior unsecured debt ratings.

The outlook is positive.

According to the agency, net issuance proceeds from the proposed notes will be used to refinance $222 million of existing debt and for general corporate purposes.

The notes will rank pari passu with all of Coca-Cola Femsa's other existing and future senior unsecured obligations, the agency said, adding that Coca-Cola Femsa's A3/Aaa.mx ratings are supported by the company's position as the largest Coca-Cola bottler in Latin America, with leading market shares and significant distribution infrastructure in its franchise territories, strong profitability, and a track record in recent years of ample free cash flow and healthy credit metrics.

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