...The affirmation of Coca-Cola FEMSA, S.A.B. de C.V.'s (KOF) ratings reflects Fitch Ratings' expectation that the company's credit metrics will improve in the next 12¡18 months after announcing in August 2018 that it will exercise the put option to sell its 51% equity interest in the operations of Coca-Cola FEMSA Philippines Inc. (CCFPI) to The Coca- Cola Company (KO; A/Stable). In addition, Fitch believes KOF will continue to pursue manageable acquisitions, as in the recently concluded transactions in Guatemala and Uruguay for an estimated combined value of around USD425 million. Fitch incorporates in its base case projections that KOF's net leverage will gradually strengthen to around 1.5x, including the USD700 million estimated proceeds from the sale of the Philippines operations and the additional debt related to the acquisitions. KOF's ratings continue to be supported by its strong business position as the world's largest franchise bottler of Coca- Cola products in terms of sales volume,...
