Fomento Economico Mexicano's credit metrics and liquidity position have remained solid, in line with our expectations. The company has continued to successfully execute its expansion program, financed through cash flow generation and cash on hand. We're affirming our 'A-' global scale corporate credit rating and our 'mxAAA' long-term and 'mxA-1+' short-term national scale ratings on the Mexico-based retailer. At the same time, we are affirming our 'A-' issue-level ratings on FEMSA. The stable outlook reflects our expectation that FEMSA will maintain strong financial performance in the next two years, despite challenging economic conditions in Mexico, with leverage ratios consistently below 1.5x and discretionary cash flow to debt above 25%, even considering potential growth that could be funded through cash reserves.
