S&P rates Femsa notes BBB+

Standard & Poor's said it assigned its BBB+ global scale corporate credit rating on Fomento Economico Mexicano, SAB de CV (Femsa) and to its proposed long-term senior unsecured notes.

The outlook is stable.

S&P said the ratings on Femsa reflect the following: The company's sound operating performance; satisfactory management team; its subsidiary Femsa Comercio's solid market position in Mexico; the stable dividends it receives from Heineken NV and Coca-Cola Femsa SAB de CV; its "exceptional" liquidity; and S&P's expectation that the company will continue to finance its aggressive organic growth expansion in the coming years with internal cash flow generation.

Somewhat mitigating these factors are the company's geographic concentration mainly in Mexico and the high competition and cyclicality of the retail industry in the country, the agency said.

© 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.