S&P affirms CabCorp

Standard & Poor's said it affirmed its BB corporate credit rating on the Central America Bottling Corp. (CabCorp) and the BB rating on its senior unsecured notes due 2022.

The outlook is stable.

The rating affirmation follows Cabcorp's announcement that it will issue a $100 million add-on to its existing $200 million senior unsecured notes due 2022.

Through the proposed add-on, Cabcorp seeks to seize favorable market conditions to enhance its liquidity. The company will keep proceeds in cash and could use them for potential acquisitions in the next 12 months. Although the proposed add-on will increase the company's total debt to EBITDA to 4.8x from 4.0x as of the end of 2012, it will decrease to 4.3x by the end of 2013, and S&P expects it to continue declining as EBITDA rises.

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