S&P: Embotellador Atic view to stable

S&P said affirmed the B- corporate credit and issue-level ratings on Grupo Embotellador Atic SA and revised the outlook to stable.

On May 8, Atic announced a corporate reorganization plan consisting of the discontinuing of operations in markets that were posting weak operating results and financial losses, including Mexico, Brazil, Venezuela, Thailand and Indonesia. Under this plan, Atic will sell those operations to its sister holding company, Callpa, and the agency expects Atic to benefit from annual EBITDA gains by more than $30 million.

The reorganization alleviates profitability pressures and improves Atic’s medium-term growth prospects, by focusing on markets where the company has been resilient to adverse macro conditions and to competition, the agency explained.

S&P said the stable outlook reflects its view that higher EBITDA stemming from the corporate reorganization will help the company improve its key credit metrics and deleverage its capital structure.

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