On Dec. 23, 2002, Standard&Poor's Ratings Services affirmed its 'BBB' corporate credit rating on Mexico-based Coca-Cola FEMSA S.A. de C.V. (KOF) after the announcement of its intention to acquire Panama-based Panamerican Beverages Inc. (Panamco). The outlook is stable. The affirmation of the ratings on KOF is based on Standard&Poor's opinion that the combination of the two bottlers will create the largest and most important bottler of Coca-Cola products in Latin America, and the second-largest bottler of the global Coca-Cola system. KOF's business profile will strengthen further, with Coca-Cola Co. as a more important partner, allowing for a relatively rapid improvement of financial measures in the medium term. Although the planned debt increase to finance the acquisition
