...Strong Business Profile: Kimberly Clark de Mexico, S.A.B. de C.V.'s (KCM) solid business profile is supported by its brand portfolio, low cost structure, extensive distribution network and access to Kimberly-Clark Corp.'s (KMB) resources. The ratings reflect KCM's above-average ability to withstand competitive pressure, manage pricing and offset input cost pressure, all of which is based on its leading business position in Mexico's consumer product market. The company is the market leader in most of the product categories in which it participates. Competitive pressures lower margins: For the LTM ended June 30, 2014, KCM's EBITDA margin narrowed about 100 bps over second-quarter 2013 LTM to 27.9%, and it is expected to potentially drop to 26%¡27% by year-end 2014. This is the result of a more competitive environment, as well as pricing initiatives undertaken in fourth-quarter 2013, coupled with low consumer confidence and spending in first-half 2014. Revenue and EBITDA margin to improve:...
