S&P affirms Coca-Cola Femsa

Standard & Poor's said it affirmed the A- long-term corporate credit rating and A- senior debt rating on Coca-Cola Femsa SAB de CV.

The outlook is stable.

The rating actions complete the review of all aspects of the company's credit, triggered by a change in S&P's analysis of the Coke system, the agency said.

The senior debt rating is at the same level as the corporate credit rating, reflecting the upstream guarantees from the company's Mexican subsidiary, which will be put in place within one month, S&P said.

The ratings consider the company's structural subordination relative to operating-company liabilities, the agency added. The Mexican subsidiary represents about 40% of the company's consolidated EBITDA, and this EBITDA represents around 49% of total debt.

The ratings reflect the company's satisfactory business profile supported by implicit support from Coca-Cola Co. (A+/stable/A-1) through its 31.6% stake in the company, its strategic position in Coca-Cola's Latin American distribution system, its geographic diversification throughout the region, the historical and relatively stable cash-flow characteristics of the non-alcoholic beverage industry and the expectation that the company will maintain its modest financial profile, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.