Moody's rates Coca-Cola Femsa debt A3

Moody's Investors Service said it assigned Aaa.mx Mexican national scale and A3 senior unsecured local-currency ratings to Coca-Cola Femsa, SAB de CV's proposed Ps. 3 billion certificados bursatiles due 2012 and affirmed the A3 foreign-currency rating for Corporación Interamericana de Bebidas, SA de CV's (Panamco) $290 million 7¼% senior unsecured notes due 2009, which are guaranteed by Coca-Cola Femsa.

The outlook is stable.

The agency said the ratings assigned to Coca-Cola Femsa's certificados bursatiles are supported by the company's Baa standalone credit profile, pronounced franchise strength as the largest Coca-Cola bottler in Latin America, very healthy margins relative to most international peers, solid credit metrics for the category and a modest ratings lift given its important strategic role in the Coca-Cola system.

These strengths are partly offset by the inherent volatility of some South and Central American markets and the potential for greater event risk under the recently announced cooperation framework with The Coca-Cola Co., which grants Coca-Cola Femsa greater flexibility in pursuing growth through acquisitions than may have been the case in the past, Moody's said.

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