S&P rates AmBev debentures AAA(br)

Standard & Poor's said it has assigned its Brazil national-scale rating AAA(br) to Companhia de Bebidas das Americas - AmBev's proposed R$2 billion nonconvertible local debentures.

The proceeds from the issuance will be used in the acquisition of the shares of Quilmes Industrial SA, owned by Beverage Associates Corp., in the total amount of $1.2 billion, the agency added.

S&P said that the AAA(br) rating assigned to AmBev reflects the company's relatively diversified business profile, with a combination of revenue streams from higher growth, volatile emerging markets and more predictable, established markets, its dominant market positions in South America and Canada, a very cost-efficient operation and its solid cash-flow metrics.

These positive factors are partly offset by the company's relevant exposure to the Brazilian beer and soft drink markets and an intermediate financial risk profile, according to the agency.

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