Fitch affirms CMQ

Fitch Ratings said it affirmed Cerveceria y Malteria Quilmes Saica y G's (CMQ) foreign- and local-currency issuer default ratings at BB- and the senior unsecured notes due in 2012 issued by Argentine Beverages Financial Trust (Gain Bebidas Argentinas) at BB-.

The outlook is stable.

The agency said CMQ is the largest brewer in Argentina with an estimated 78% market share. It is a wholly owned subsidiary of Quinsa, which in turn is 99.9% owned by Companhia de Bebidas das Americas SA. AmBev does not guarantee the debt of CMQ, but Fitch believes it is likely that AmBev would help CMQ pay its debt in the event of the imposition of transfer and convertibility restrictions by the Argentine government to avoid the negative externality on the cost of AmBev's debt that would result if one of its key subsidiaries defaults.

The net debt-to-EBITDA ratio was 0.2 times at the end of December.

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