Fitch affirms Embotelladora Andina

Fitch Ratings said it affirmed Embotelladora Andina SA's foreign- and local-currency issuer default ratings at A-, national-scale issuer default rating at AA(chl), Yankee bonds due 2007 and 2027 at A- and series A and B peso-denominated local bonds at AA(chl).

The outlook is stable.

The agency said Andina's ratings reflect its strong business position, healthy balance sheet and the favorable outlook for soft drink companies in Latin America. During 2006, Andina's average soft drink market shares in its Chilean, Argentine and Brazilian territories, as measured by volume, were 67.8%, 49.5% and 57.3%, respectively.

Balanced against these credit strengths is the potential for political and economic instability in Argentina, one of Andina's key markets, and, to some extent, the company's position as a leading bottler in Latin America, which could result in future acquisitions that most likely would weaken the company's credit profile, Fitch said.

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