Fitch affirms Embotelladora Andina

Fitch Ratings said it affirmed Chile-based Embotelladora Andina SA's A- foreign- and local-currency issuer default ratings, AA(chl) national scale rating, the A- issue ratings on the company's Yankee bonds due in 2007 and 2027 and the AA(chl) ratings of its series A and series B peso-denominated local bonds. The outlook is stable.

The agency said Andina's ratings are supported by the company's long-term commitment to a strong balance sheet, which has resulted in the company maintaining a positive net cash position since 1997. Andina's ratings also reflect the company's excellent operational skills, the relatively low business risk of soft drinks in Latin America, strong demand for Coca-Cola products within its territories and favorable long-term growth fundamentals for soft drinks in Latin America.

Fitch predicted that the company's total debt to operating EBITDA ratio should remain about 1.5x in 2006.

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