...Coca-Cola FEMSA, S.A.B. de C.V.'s (KOF) ratings reflect the company's 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. The company has a solid financial position, with low leverage metrics, consistent positive FCF generation and ample liquidity across the business cycle. Fitch Ratings acknowledges the company's strategic relationship with The Coca-Cola Company (KO, A+/Negative), but its ratings are viewed on a stand-alone basis. The ratings are constrained by the highly competitive nature of the beverage industry, current macroeconomic volatility in its South American territories, exposure to volatility in raw materials costs and foreign currencies, and potential changes in tax laws that could raise taxes on sugary beverages....
