When we work together with commitment and responsibility, we move forward together. The affirmation of Bepensa's "AAA(mex)" rating by Fitch Ratings represents that, even in times of contingency like the ones we are currently experiencing due to the COVID-19 pandemic, we remain a company with a stable outlook. Bepensa Bebidas and Financiera Bepensa also received this affirmation.
Fitch Ratings has affirmed Bepensa's long-term national scale rating, remaining at 'AAA(mex)', and its international scale (IDR, Issuer Default Rating) rating in foreign and local currencies at 'BBB'. These ratings represent a stable outlook.
The ratings affirmation reflects the expectations and impact on operating performance resulting from the disruptions associated with the coronavirus and a lower pace of economic activity projected for Mexico in 2020. Remaining with a stable rating represents Bepensa's high levels of productivity and resilience to face unpredictable or risky scenarios.
They also incorporate the increase in leverage metrics following the acquisition of ABC Leasing SAPI de CV (ABC Leasing), which will change its capital structure over the rating horizon, as Financiera Bepensa will require higher levels to operate, thus strengthening its capacity and expanding its reach.
Bepensa's ratings reflect Bepensa Bebidas' strong business position as a bottler of Coca-Cola branded products in the Yucatán Peninsula and the Dominican Republic. The ratings also incorporate the company's business portfolio in the industrial and financial services sectors, as well as in the Bepensa Spirits beverage industry.
Fitch expects Bepensa's consolidated performance to be impacted in 2020 due to the coronavirus pandemic and the economic downturn, but projects a gradual recovery in 2021. Fitch's base case 2020 forecast projects Bepensa's consolidated revenues to decline by approximately 9% in 2020 and increase by approximately 9% in 2021. The 2021 revenue recovery will be driven by a normalization of economic activity. In 2019, Bepensa's consolidated revenues grew 7% compared to 2018.
Fitch incorporates into Bepensa's ratings the fact that its consolidated financial position will have higher leverage levels compared to previous years due to the growth in the scale of its financial services business following the acquisition of ABC Leasing. Although the transaction resulted in a significant increase in the company's total debt by consolidating approximately MXN3 billion of ABC Leasing, it also considers a client portfolio of approximately MXN4.1 billion, which mitigates risks.
Find more detailed information about Fitch Ratings and Bepensa's results at https://bit.ly/317LNIq
