The corporate credit rating on Coca-Cola Femsa S.A.B. de C.V. (KOF) is based on its stand-alone credit profile (SACP) and the implicit support from The Coca-Cola Company (TCCC; A+/Positive/A-1) through its 29.4% stake in KOF. KOF's SACP is based on our assessment of its "satisfactory" business profile that reflects KOF's strategic position in TCCC's Latin American distribution system, its geographic diversification throughout the region, and the historical and relatively stable cash flow characteristics of the nonalcoholic beverage industry. The rating also reflects our expectation that the company will maintain its "modest" financial profile, as reflected in its strong financial measures and robust cash flow generation. Intense competition, volatile raw material prices, and the country and macroeconomic risk in certain regions
