Strong soft-drink market presence Coca-Cola Co.'s equity participation Strategic importance to the Coke system Highly competitive environment Foreign currency exposure The ratings for Coca-Cola FEMSA S.A. de C.V. (KOF) reflect the company's strong soft-drink market presence in its franchise territories in Latin America, relative cash flow diversification, Coca-Cola Co.'s (KO) equity participation in KOF, and the company's strategic importance to the Coke system in Latin America. These factors are partially offset by a highly competitive environment, KOF's moderately aggressive financial profile, and foreign currency exposure related to its dollar-denominated debt. As the largest soft-drink bottler in Latin America and the second-largest worldwide, KOF represents approximately 50% of KO's sales volume in Mexico, 40% in Latin America, and 10% worldwide. The
