In the months of January and February 2013, Moody´s, Fitch & Ratings and Standar & Poor´s gave cbc Ba2, BB+ and BB qualifications respectively.
This risk rating agencies state that cbc has a solid position based on its extensive portfolio, its market position in every country in which it operates and its low leverage.
cbc maintains a stable Ba2 position.
“We have observed that the “Anchor Bottler” denomination expresses PepsiCo´s perspective that cbc / Cabcorp is recognized as one of the most important bottlers and will be first in line for opportunities in the region”.
“Some of the main factors the Ba2 qualification is based on is its extensive beverage portfolio, its solid market position where it operates and a low leverage”.
“The stability of cbc / Cabcorp reflects our expectation that the company will be able to successfully integrate its most recent acquisition in Ecuador without operational issues, while maintaining a solid credit indicator. Additionally, this stability incorporates improvements in operative margins and cash flow generation in the following years.”
Fitch & Ratings View
cbc maintains its BB+ qualification
“cbc´s credit qualification is supported by a long story of operations as anchor bottler of PepsiCo for Central America and the Caribbean, by a diverse beverage portfolio, by leader brands in each country where it operates and by a wide distribution network”.
“The qualification also takes into account that cbc has an excellent operational performance, positive and stable cash flow generation and solid credit indicators”.
“Fitch anticipates that the margins of cbc will improve as a result of the continued implementation of efficiencies in production and distribution, as well as raw materials coverage initiatives and above all, by the consolidation of its operations in The Caribbean and Ecuador”.
“Fitch anticipates that cbc will keep its positive growth trend. Also, it estimates that the company´s volume, sales and EBITDA (measured as operational earnings plus depreciation and amortization) has increased approximately 28%, 19% and 12% respectively, compared to last year during the same period (September 2012)”.
Standar & Poor´s View
cbc, The Central America Bottling Corporation, maintains its BB qualification.
The stable outlook given to Cabcorp reflects our expectation that the company will keep improving its indicators while consolidating the acquisition of Ecuador, and that it will reach expected efficiencies and synergies while it maintains a moderate financial policy.
Cabcorp is the anchor bottler of Pepsi with leadership position in each category and market. Carbcorp produces, distributes and commercializes carbonated beverages, juices, nectars, energy drinks, sports drinks, water, tea and beer.
Cabcorp is geographically diversified with operations in Guatemala, Ecuador, El Salvador, Honduras, Jamaica, Nicaragua, Puerto Rico and Trinidad & Tobago. Through Livsmart, the company also exports to México, the United States of America and other countries in the Caribbean and South America. The company has a wide distribution network of 470,000 points of sale in the continent.