S&P affirms CabCorp

Standard & Poor's said it affirmed the BB long-term corporate credit rating and its senior unsecured debt rating on the Central America Bottling Corp. (CabCorp).

The outlook is negative.

The affirmation follows CabCorp's recent acquisition of a controlling stake in Grupo Tesalia, an exclusive Pepsi Bottler in Ecuador, S&P said.

CabCorp will pay $63 million for 50.5% of the company and will consolidate Grupo Tesalia's financial statements with its own, including net debt of $59 million, the agency said.

CabCorp will fund this transaction through a part of the proceeds of the $200 million international bond issued in the first-quarter of 2012.

With this acquisition, CabCorp will continue to increase its geographic diversification in Latin America, while expanding its non-carbonated soft drink categories such as bottled water, isotonics and energy drinks, as Grupo Tesalia has a significant market share in these products in Ecuador, S&P said.

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