Fitch: No changes for Coca-Cola Femsa

Fitch Ratings said it views the agreement reached by Coca-Cola Femsa, SAB de CV to merge the bottling operations of Grupo Tampico, SA de CV to have no material impact to the credit quality.

The all-share transaction will not significantly change the company's financial profile or credit metrics.

The company has a foreign-currency issuer default rating of A, local-currency issuer default rating of A, national scale long-term rating of AAA(mex), national scale short-term rating of F1+(mex) and A rating on its $500 million in senior notes.

The outlook is stable.

Fitch also said it considers that Grupo Tampico's contiguous franchise territories, production facilities, distribution network and expected synergies will slightly improve the Coca-Cola Femsa's business position.

The consolidation will add to the company's balance sheet a net debt of about 2.7 billion in Mexican pesos, Fitch added.

The ratings are supported by its solid financial position, good operating performance and strong business profile, the agency said.

The ratings also factor in the company's strategic relationship with the Coca-Cola Co. and the explicit and implicit financial support Coca-Cola Femsa has received from Coca Cola, Fitch said.

The ratings are constrained by the highly competitive nature of the beverage industry, the economic volatility present in its territories and possible potential acquisitions, the agency said.

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