...Sound Business Position: Coca-Cola FEMSA, S.A.B. de C.V.'s (KOF) ratings reflect its strong business position as the world's largest franchise bottler of Coca-Cola products, with operations across Mexico, Brazil, Colombia, Argentina, Venezuela, Central America and the Philippines. Fitch Ratings believes the company's extensive and well-developed distribution network, solid brand equity of Coca-Cola products, diversified product portfolio and solid execution at the point of sale provide a competitive advantage. Geographic Diversification: KOF's credit profile benefits from its geographically diversified operations, as they decrease business risk and cash flow volatility. Weakness in operating performance from operations in South America during 2015, mainly from Brazil and Venezuela (21% and 7% of total volume, respectively), has been partially alleviated by better results from Mexico and Central America. Operating Performance Challenged: KOF's operations are expected to continue facing a...
