...Ratings Downgrade: The September 2016 downgrade of Coca-Cola FEMSA, S.A.B. de C.V.'s (KOF) ratings reflects a slower than expected deleveraging following the acquisition of 100% of the bottling operations of Vonpar SA in Brazil. Fitch Ratings projects that KOF's pro forma total debt/EBITDA and net debt/EBITDA will be approximately 2.2x and 2.0x, respectively, by year- end 2017. These leverage metrics are higher than our previous expectation of around 1.5x and 1.3x, respectively. Solid Business Position: KOF's 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 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. Diversified Operations: Fitch believes KOF...
