Bulletin: FEMSA's Entry Into Brazil's Convenience Store Sector Supports Expansion, Won't Affect Credit Metrics - S&P Global Ratings’ Credit Research

Bulletin: FEMSA's Entry Into Brazil's Convenience Store Sector Supports Expansion, Won't Affect Credit Metrics

Bulletin: FEMSA's Entry Into Brazil's Convenience Store Sector Supports Expansion, Won't Affect Credit Metrics - S&P Global Ratings’ Credit Research
Bulletin: FEMSA's Entry Into Brazil's Convenience Store Sector Supports Expansion, Won't Affect Credit Metrics
Published Aug 07, 2019
2 pages (1159 words) — Published Aug 07, 2019
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Abstract:

MEXICO CITY (S&P Global Ratings) Aug. 7, 2019--S&P Global Ratings said today that Fomento Económico Mexicano S.A.B. de C.V.'s (FEMSA; global scale: A-/Stable/--; national scale: mxAAA/Stable/mxA-1+) recent announcement of a 50-50 joint venture with Raízen S.A. (BBB-/Stable/--) to enter the Brazilian convenience-store sector continues to support the company's long-term geographic expansion strategy without affecting its credit profile. Raízen currently operates more than 6,200 Shell service stations in Brazil, of which approximately 1,000 have a Select brand convenience store. We believe the agreement allows FEMSA to partner with an experienced local player to enter the Brazilian market with significant growth opportunity, given its still low penetration. As a result, we expect FEMSA to use the joint venture to increase the number

  
Report Type:

Bulletin

Ticker
FEMSAUB@MM
Issuer
Fomento Economico Mexicano S. A. B. de C. V.
GICS
Soft Drinks (30201030)
Sector
Global Issuers
Country
Mexico
Region
Latin America
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Bulletin: FEMSA's Entry Into Brazil's Convenience Store Sector Supports Expansion, Won't Affect Credit Metrics" Aug 07, 2019. Alacra Store. May 11, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-FEMSA-s-Entry-Into-Brazil-s-Convenience-Store-Sector-Supports-Expansion-Won-t-Affect-Credit-Metrics-2278668>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: FEMSA's Entry Into Brazil's Convenience Store Sector Supports Expansion, Won't Affect Credit Metrics Aug 07, 2019. New York, NY: Alacra Store. Retrieved May 11, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-FEMSA-s-Entry-Into-Brazil-s-Convenience-Store-Sector-Supports-Expansion-Won-t-Affect-Credit-Metrics-2278668>
  
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