On Dec. 20, 2006, Standard&Poor's Ratings Services affirmed its 'BBB+' long-term corporate credit rating on Mexico-based Coca-Cola FEMSA S.A.B. de C.V. (KOF). The outlook is stable. The rating action follows the announcement that KOF and The Coca-Cola Co. (KO) intend to acquire the Mexican-based fruit juice company, Jugos del Valle S.A.B. de C.V. (JDV), where the ownership structure will be evenly split at 50%. The ratings affirmation is based on our opinion that the acquisition will allow KOF to increase its market presence in the noncarbonated beverage segment through a highly renowned Mexican brand. In addition, we believe the transaction offers the potential for significant synergies across the value chain that will improve KOF's profitability, after operating efficiencies
