S&P ups AmBev

Standard & Poor's said that it raised the corporate credit rating on AmBev - Companhia de Bebidas das Americas to A- from BBB+.

The outlook is stable.

The upgrade reflects the comfort that the company's modest financial profile, strong liquidity, free operating cash flow and rather inelastic product demand allows it to face potential volatility in its main markets, mitigating the risks of a larger-than-peers exposure to emerging markets, particularly those in Latin America, the agency said.

The rating on AmBev reflects the company's strong business profile, supported by its strong branded portfolio and favorable growth prospects in its main markets, in which AmBev holds a dominant market position, significant scale gains, and pricing capacity, S&P said.

The strength of the company's businesses, associated with its modest financial profile, help mitigate its exposure to economic volatility and country risks in Latin America, the agency added.

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