Moody's affirms San Miguel

Moody's Investors Service said it affirmed the Ba1 corporate family rating for San Miguel Capital Funding Ltd., a 100% owned subsidiary of San Miguel Corp.

At the same time, Moody's said it withdrew San Miguel Capital's prospective Ba3 preferred stock rating and San Miguel's Ba1 indicative foreign-currency senior unsecured ratings.

The outlook is stable.

The withdrawal follows San Miguel's decision to delay its capital market debt plan until 2007, the agency said.

The affirmation reflects Moody's view that the company's decision to delay should not materially impact the group's long-term rating unless the decision is carried past June 2007. The company enjoys strong brand equity and commanding positions in most of its markets, which are stable by nature, providing it with a healthy platform for cash-flow generation, Moody's said.

The strengths of the Philippines-based company are tempered by weakness in certain key financial credit metrics, which are more indicative of a Ba/single B profile, the agency said.

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