The ratings on Coca-Cola Femsa S.A.B. de C.V. (KOF) reflect the company's satisfactory business profile, supported by implicit support from The Coca-Cola Co. (KO; A+/Negative/A-1) through its 31.6% stake in KOF; and the strategic position that KOF holds in the Coke system in Latin America. The ratings also incorporate the company's intermediate financial profile, reflected in strong financial measures and robust cash flow generation. Intense competition, a volatile market, and foreign-currency exposure related to KOF's dollar-denominated debt partially offset the positive factors. As the largest soft drink bottler in Latin America and the second-largest worldwide within the Coca-Cola system, KOF represents more than 40% of KO's sales volume in Mexico, approximately 35% in Latin America, and about 10% worldwide. The
