Bulletin: Coca-Cola Femsa S.A.B. de C.V. Ratings Unaffected By Planned Sale Of Its 51% Stake In Coca-Cola Femsa Philippines

MEXICO CITY (S&P Global Ratings) Aug. 17, 2018--S&P Global Ratings said today that its ratings and outlook on Coca-Cola Femsa, S.A.B de C.V. (KOF, global scale: A-/Stable/--; national scale: mxAAA/Stable/--) are unaffected by the company's announcement that it will exercise its put option to sell its 51% stake in Coca-Cola Femsa Philippines, Inc. (not rated) to The Coca-Cola Company (TCCC: A+/Stable/A-1). The financial terms of the deal are not yet publicly disclosed, but we expect the transaction to close by the end of this year. We expect KOF to use the net proceeds from the sale to deleverage its balance sheet and for general corporate purposes. Consequently, we believe that with this transaction, KOF's credit metrics will modestly improve, with

...MEXICO CITY (S&P Global Ratings) Aug. 17, 2018--S&P Global Ratings said today that its ratings and outlook on Coca-Cola Femsa, S.A.B de C.V. (KOF, global scale: A-/Stable/--; national scale: mxAAA/Stable/--) are unaffected by the company's announcement that it will exercise its put option to sell its 51% stake in Coca-Cola Femsa Philippines, Inc. (not rated) to The Coca-Cola Company (TCCC: A+/Stable/A-1). The financial terms of the deal are not yet publicly disclosed, but we expect the transaction to close by the end of this year. We expect KOF to use the net proceeds from the sale to deleverage its balance sheet and for general corporate purposes. Consequently, we believe that with this transaction, KOF's credit metrics will modestly improve, with net debt to EBITDA declining from about 1.8x in the last 12 months ended June 2018 to about 1.5x by the end of 2018--a level that would remain commensurate with our current rating level. While Coca-Cola Femsa Philippines represents about 10%...

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