Standard&Poor's Ratings Services' corporate credit rating on Coca-Cola Femsa S.A.B. de C.V. (KOF) reflects the company's satisfactory business profile supported by implicit support from The Coca-Cola Co. (KO; A+/Stable/A-1) through its 31.6% stake in KOF; KOF's strategic position in Coca-Cola's Latin American distribution system; its geographic diversification throughout the region; the historical and relatively stable cash-flow characteristics of the nonalcoholic beverage industry; and our expectation that the company will maintain its modest financial profile, as reflected by its strong financial measures and robust cash-flow generation. Intense competition, a volatile market, and partial foreign-currency exposure related to KOF's dollar-denominated debt partly offset the positive factors. Our senior unsecured debt rating on KOF reflects the upstream guarantees from KOF's Mexican
