The ratings agency Standard & Poors (S&P) has raised its rating on the Panama-based drinks group Panamerican Beverages (Panamco) to BBB, from BBB-, and removed the company from CreditWatch status.
The re-rating was made following the confirmation by Coca-Cola Femsa, that it has acquired Panamco. S&P said that Panamco’s rating now reflect that of Femsa, demonstrating the financial support that the Mexican company is expected to offer to its subsidiary.
S&P said Panamco’s ratings should be supported by Femsa’s debt reduction programme, as well as the greater economies of scale that the combined operations of the two companies will produce.
S%P said it was also taking into account support from the Coca Cola Company, which now owns 40% in the merged entity.
