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Prospect News home > News index > List of issuers F > Headlines for Fomento Económico Mexicano, SAB de CV > News item |
Fitch rates Femsa bonds A
Fitch ratings said it gave an A rating to Fomento Economico Mexicano, SAB de CV’s (Femsa) $500 million of exchangeable bonds due 2026. The bonds will be exchanged into 5.2 million Heineken Holding NV shares.
The agency also revised Femsa’s outlook to negative from stable and affirmed its long-term foreign- and local-currency issuer default ratings and senior unsecured debt at A.
“The revision of the outlook reflects Fitch's view that Femsa's credit profile will have less financial flexibility and lower dividend inflows once the sale of Heineken shares is completed over the next two to three years. In Fitch's opinion, the company will lose some business diversification and will see reduced hard-currency (HC) cash inflows. It also reflects uncertainty over whether divestiture proceeds would be used for organic or inorganic growth or returned to shareholders,” the agency said in a statement.
Femsa plans to sell its equity stake in Heineken NV and Heineken Holding NV.
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