--Foreign currency and local currency long-term Issuer Default Rating (IDR) at 'A';
--National scale rating at 'AA+(cl)';
--Senior unsecured bonds at 'AA+(cl);
--National equity rating at 'Primera Clase Nivel 1'.
The Rating Outlook is Stable.
KEY RATING DRIVERS
CCU's 'A' ratings are amongst the highest
CCU's ratings are constrained by its operations in
Strong Market Position in Chilean Beer Business: CCU has a 78% market share in the Chilean beer market. Despite competitive pressures from
Diversified Business Portfolio: CCU's ratings also consider its diversified product portfolio and the stability of the beverage industry in
Sound Operational Performance: In 2013, CCU continued to report sound operational results despite facing cost pressures. Consolidated volumes increased 10%, reaching 21.9 million hectoliters, while average prices increased 1.1%. CCU's normalized EBITDA increased to
Conservative Financial Strategy: Management continues to maintain a conservative capital structure and high liquidity. As of
The most likely cause of a downgrade would be a change in management's attitude toward maintaining a strong capital structure or a large debt-financed acquisition. A positive rating action is not likely to occur given that Fitch does not expect a significant improvement in operational performance and credit metrics.
Additional information is available at 'www.fitchratings.com'.
--'Corporate Rating Methodology' (
--'National Ratings Scale Criteria' (
Corporate Rating Methodology: Including Short-Term Ratings and Parent and Subsidiary Linkage
Monica Coeymans, +56-2-2499-3314
Source: Fitch Ratings
Most Popular Stories
- Boehner Says Impeachment Talk Is Democrat Scam
- You're So Vain: Microsoft to Launch First 'Selfie Phone'
- U.S. Home Price Gains Slow for 6th Month in a Row
- Merck Profit More Than Doubles in Q2
- Sutherland Responds to 'Unprofessional' Jibe
- Is California Going to Land Tesla's Battery Plant?
- U.S. Consumer Confidence at Strongest Since 2007
- Twitter's Stock Rises on Stellar Revenues
- Business Leaders Set for CHCC Convention
- Beyonce Seen Apartment Shopping in NYC Without Jay Z