Mexico City, Mexico – March 30, 2020 – Coca-Cola FEMSA, S.A.B. de C.V. (BMV: KOF UBL; NYSE: KOF) (“Coca-Cola FEMSA” or the “Company”) announces that as a result of Standard and Poor’s (“S&P”) actions on the sovereign ratings of Mexico, S&P has lowered the global scale credit rating on Coca-Cola FEMSA from A- to BBB+ with a negative outlook.
S&P’s methodology limits the Company’s credit rating to be one-notch above the sovereign foreign currency rating, therefore this change is not related to the Company’s financial position. As such, S&P’s ‘A-‘ stand-alone credit profile for KOF remains unchanged because, in S&P’s view, the company is well positioned to absorb negative shocks related to the pandemic caused by the Covid-19 outbreak. S&P highlighted the Company’s safe and sound finances, strong business position, manageable leverage, robust cash position and geographic diversification. Finally, the negative outlook reflects a potential one-notch downgrade in case of a potential downgrade to Mexico’s sovereign rating.