S&P lifts Coca-Cola Femsa view to positive

Standard & Poor's said it revised its outlook on the BBB+ long-term corporate credit rating of Coca-Cola Femsa SA de CV to positive from stable.

The outlook revision reflects the improvement in Coca-Cola Femsa's financial profile and its strong business fundamentals, the agency said. S&P believes that Coca-Cola Femsa's ability to continue leveraging on its brand equity and distribution network will support the company's performance in volatile short-term market conditions and allow it to maintain a strong market share and further position its products in countries other than Mexico.

The rating reflects the company's strong business profile, the Coca-Cola Co.'s implicit support through its 31.6% stake in Coca-Cola Femsa, the strategic position that Coca-Cola Femsa holds in the Coke system in Latin America and the company's positive deleveraging after acquiring Panamerican Beverages Inc. in 2003, S&P said.

These factors are partially offset by a highly competitive environment and market volatility, the agency said, as well as foreign currency exposure related to the company's dollar-denominated debt, which represents around 29% of total debt outstanding as of February.

© 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.