Research Update: Coca-Cola Femsa Outlook Revised To Stable From Negative On Improved Leverage Metrics; 'A-' Ratings Affirmed

Coca-Cola Femsa delivered its 2017 results in line with our expectations, with improvements in top line growth, profitability, and leverage. Such improvements have aligned credit metrics with its current financial risk profile. We are affirming our 'A-' global scale and 'mxAAA' national scale corporate credit and debt ratings on Coca-Cola Femsa. The stable outlook reflects our expectation that KOF will remain committed to low leverage, operating efficiencies, and profitability. For the next two years, we expect debt to EBITDA below the 2.0x area, even within the context of the company's growth strategy. On April 27, 2018, S&P Global Ratings affirmed its 'A-' global scale and 'mxAAA' national scale corporate credit ratings on Coca-Cola Femsa S.A.B. de C.V. (KOF). We also

...+ Coca-Cola Femsa delivered its 2017 results in line with our expectations, with improvements in top line growth, profitability, and leverage. Such improvements have aligned credit metrics with its current financial risk profile. + We are affirming our 'A-' global scale and 'mxAAA' national scale corporate credit and debt ratings on Coca-Cola Femsa. + The stable outlook reflects our expectation that KOF will remain committed to low leverage, operating efficiencies, and profitability. For the next two years, we expect debt to EBITDA below the 2.0x area, even within the context of the company's growth strategy....

Research Update