Bulletin: Fomento Economico Mexicano Ratings Unaffected By The Sale Of A Stake In Heineken

MEXICO CITY (S&P Global Ratings) Sept. 20, 2017--S&P Global Ratings today said that its ratings and outlook on Mexico-based retailer, Fomento Economico Mexicano S.A.B. de C.V. (FEMSA); A-/Stable/--) are not immediately affected by its announcement that it sold 5.24% of its combined interest in Heineken Group through an equity offer of approximately EUR2.5 billion. Following the transaction, Femsa's economic interest in the Heineken Group will decrease overall from 20.00% to 14.76%, retaining one seat on the board of directors of Heineken Holding N.V. and two on the supervisory board of Heineken N.V. Though this transaction will reduce the dividends received from this investment in the future, in our view, it will not have a significant impact on Femsa's EBITDA and

...MEXICO CITY (S&P Global Ratings) Sept. 20, 2017--S&P Global Ratings today said that its ratings and outlook on Mexico-based retailer, Fomento Economico Mexicano S.A.B. de C.V. (FEMSA); A-/Stable/--) are not immediately affected by its announcement that it sold 5.24% of its combined interest in Heineken Group through an equity offer of approximately EUR2.5 billion. Following the transaction, Femsa's economic interest in the Heineken Group will decrease overall from 20.00% to 14.76%, retaining one seat on the board of directors of Heineken Holding N.V. and two on the supervisory board of Heineken N.V. Though this transaction will reduce the dividends received from this investment in the future, in our view, it will not have a significant impact on Femsa's EBITDA and cash flow generation. Moreover, we expect the proceeds will strengthen the company's liquidity and leverage metrics, providing cushion to finance its expansion program, while it maintains an adjusted debt-to-EBITDA ratio consistently...

Bulletin