Solid market position in the Mexican convenience store industry through its Oxxo brand; Sound operating performance; Oxxo brand presence mainly in Mexico; Satisfactory management team; Stable dividends received from Coca-Cola Femsa (KOF) and Heineken which improves FEMSA's revenue diversification; and Cyclical and highly competitive retail industry in Mexico. Core ratios in line with a "modest" financial risk profile; and Expansion program financed mainly with the company's own cash flow generation. The stable outlook on FEMSA reflects our expectations that the company will continue posting positive free operating cash flow (FOCF) in the next two years despite its expansion program, and that it will continue receiving stable dividends from KOF and Heineken. We also expect the company's market position to remain
