...Arca Continental, S.A.B. de C.V.'s ratings reflect the solid business position of its beverage business as one of the world's largest bottlers of Coca-Cola products, with geographically diversified operations in Latin America and the southwestern U.S., combined with a solid financial position. After completing its acquisition of the U.S. business in April 2017 and the creation of the AC Bebidas, S de R.L. de C.V. subsidiary, in which Arca Continental has an 80% equity stake and The Coca-Cola Company the remaining 20%, Fitch Ratings projects Arca Continental's total adjusted net debt by rents and factoring to EBITDAR will gradually decrease to 1.0x in the medium term. The ratings are tempered by the competitive pressures in the beverage industry, cost volatility of its main raw materials, and potential legal changes that could result in increases in taxes on sugary beverages....
