Fitch: Central America Bottling view to negative

Fitch Ratings said it affirmed the Central America Bottling Corp.'s long-term foreign- and local-currency issuer default ratings at BB+.

The outlook also was revised to negative from stable.

The negative outlook reflects Central America Bottling's higher gross leverage than Fitch previously projected and more challenging operating environment for 2018, Fitch said.

The increase in total debt to finance a portion of its capital expenditure program and acquisitions, relatively flat EBITDA generation and negative free cash flow in the last 12 months resulted mainly in a deterioration of the company's leverage metrics, the agency said.

Fitch said it acknowledges Central America's strong cash position and reduction in its total indebtedness.

The ratings also consider its business position as an anchor bottler of the PepsiCo system with operations in Central America, Caribbean, Ecuador, Peru and Argentina, the agency said.

The ratings are constrained by the sovereign ratings where it operates, competitive environment of the beverage industry and volatility of prices in its main raw materials, Fitch 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.