...High Leverage and Tight Liquidity: Fitch Ratings projects that Grupo Embotellador Atic S.A.'s (Atic) 2014 year-end net leverage ratio will be 3.8x. Poor performance in challenging markets, along with loans to related parties, have increased this ratio from 3.1x in 2013. Atic had $534 million of consolidated debt as of June 30, 2014 against $75 million of cash and marketable securities; $42 million of the debt is due in the short term. Cash has fallen from $202 million in 2012. Atic spent $90 million on capex in 2013 and around $75 million on loans to related parties. Cash Flow Pressured: Fitch expects EBITDA around $125 million for 2014. Atic's EBITDA has been pressured by strong competition in Thailand, taxes on caloric beverages in Mexico, price competition between PepsiCo, Inc. (Pepsi) and The Coca-Cola Company (Coca-Cola) in Colombia, and poor market conditions in Peru. The company continues to be cash flow negative in Brazil and is decreasing its operations. EBITDA at the LTM June...
