Chile-based beverage company Compañía de Cervecerías Unidas S.A.'s (CCU) operating performance and credit metrics somewhat underperformed in 2023 and worsened in the first half of this year. On Aug. 16, 2024, S&P Global Ratings revised CCU's outlook to negative from stable and affirmed its 'BBB' issuer credit and issue-level ratings. Our negative outlook reflects a one-in-three chances of a downgrade stemming from risks such as a weaker Argentine market for longer, further affecting demand; weaker consumption in Chile; high commodity prices of raw materials; or a weaker Chilean peso affecting costs denominated in U.S. dollars. The negative outlook reflects a one in three chance of a downgrade in the next 12 months. It also reflects uncertainties on CCU's ability to
