Fomento Economico Mexicano S.A.B. de C.V.'s EUR500 Million Exchangeable Bonds Due 2026 Rated 'BBB+'

MEXICO CITY (S&P Global Ratings) Feb. 22, 2023--S&P Global Ratings today assigned its 'BBB+' issue-level rating to Fomento Económico Mexicano S.A.B. de C.V.'s (FEMSA; global scale: BBB+/Stable/--; national scale: mxAAA/Stable/mxA-1+) €500 million bonds due 2026, which are exchangeable into Heineken Holding N.V. shares, of which FEMSA currently owns about 6.24%. The bonds bear a 2.625% annual fixed rate until their full payment. The company will use the proceeds for debt repayment and general corporate purposes. The bonds were issued on a senior unsecured and unguaranteed basis, and therefore, rank pari passu in right of order and payment with existing unsecured notes issued at FEMSA's level (95% of its total debt as of September 2022), limiting any significant subordination risk. Consequently,

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