Standard&Poor's Ratings Services' ratings on Coca-Cola Femsa S.A.B. de C.V. (KOF) reflect the company's strong business fundamentals, The Coca-Cola Co.'s (KO; A+/Stable/A-1) implicit support through its 31.6% stake in KOF, and the strategic position that KOF holds in the Coke system in Latin America. In addition, the ratings incorporate the company's positive deleveraging four years after its acquisition of Panamerican Beverages Inc., and our expectations that the company will continue to improve its financial profile through robust cash-flow generation in its core markets and an adequately designed debt repayment program. These factors are partially offset by a highly competitive environment, the volatility of the markets where KOF operates, and foreign currency exposure related to its dollar-denominated debt, which
