TEXT-Fitch cuts Controladora Mabe to 'BB+'

Feb 7 - Fitch Ratings has downgraded the ratings of Controladora Mabe,
S.A. de C.V. (Mabe) as follows:

--Foreign currency Issuer Default Rating (IDR) to 'BB+' from 'BBB-';
--Local currency IDR to 'BB+' from 'BBB-';
--6.5% senior unsecured notes due 2015 to 'BB+' from 'BBB-';
--7.875% senior unsecured notes due 2019 to 'BB+' from 'BBB-'.

The Rating Outlook has been revised to Stable from Negative.

The ratings downgrade reflects a decline in the company's credit metrics from
historical levels and from Fitch's previous expectations. EBITDA generation and
margins have been pressured by the realignment of the Brazilian operations which
have required more time than expected, as well as extraordinary charges since
the BSH acquisition in 2009. Additional pressures on the company's profitability
are related to external factors, such as increased commodity prices and currency
fluctuations. Mabe's management has implemented strong initiatives to optimize
working capital which in turn allowed the company to reduce debt; nevertheless,
this reduction was offset by lower EBITDA generation.

The Stable Outlook incorporates Fitch's view that Mabe's financial profile and
main credit metrics will remain relatively similar in current levels.

Mabe's ratings factor in its product and geographic diversification, leading
market shares in the countries where it operates, as well as the company's long
relationship and joint venture with General Electric (GE). Fitch expects Mabe
will invest to optimize its manufacturing capacity during the year. In addition,
Fitch expects Mabe's Brazilian operations to start contributing positive results
during 2012 once investments and operating rationalization is completed.

On a comparable basis, reflecting only the company's proportional participation
in Mabe Brazil (58.6%), during the last 12 months (LTM) ended Sept. 30 2011
Mabe's revenues were USD3.2 billion, similar to year-end 2010 but below USD4.2
billion registered in 2008. Similarly, according to Fitch's calculations EBITDA
for 2011 will be of approximately USD230million, down from USD392 million in
2008. EBITDA Margin has followed the same trend and for the LTM in September
2011 was 7.7% compared to 7.8% at year end 2010 and 9.3% in 2008.

Mabe's cash flow management efforts allowed it to reduce working capital during
2011 and in turn, reduce debt levels to USD700 million from USD798 million at
year end 2010. On the other hand, Fitch estimates the company's leverage
measured by Total Debt to EBITDA for 2011 to be approximately 3.0 times (x),
compared to 3.2x and 2.7x in December 2010 and 2009, respectively. Fitch expects
that Mabe's leverage ratio will remain around 3.0x reflecting a challenging
operating environment and the company's capex plan.

Mabe's liquidity and refinancing risk is low. During 2011 the company signed a
USD150 million bilateral bank facility with final maturity in 2014 that was used
to refinance short term debt and extend its debt maturity profile. As of Sept.
30, 2011 Mabe's total debt was comprised by this facility, USD200 million in
senior notes due in 2015 and USD350 million in senior notes due in 2019. The
debt amortization schedule is manageable for the company with only USD26 million
due in 2012 and USD86 million in 2013. Cash balances at the same date were USD90
million.

Factors that could result in positive rating actions include a combination of
consistent improvement in credit metrics of interest coverage and gross
leverage, in addition to maintaining good liquidity. Conversely, further
deterioration in profitability, cash flow generation and credit metrics could
pressure the company's ratings.

Contact:

Primary Analyst
Alberto Moreno
Senior Director
+52-81-8399-9100
Fitch Mexico S.A. de C.V.
Prol. Alfonso Reyes 2612
Monterrey, N.L., Mexico

Secondary Analyst
Jose Vertiz
Director
+1-212-908-0641

Committee Chairperson
Sergio Rodriguez
Senior Director
+52-81-8399-9100

Additional information is available at 'www.fitchratings.com'. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.

Applicable Criteria and Related Research:
--Corporate Rating Methodology, Aug. 12, 2011

Applicable Criteria and Related Research:
Corporate Rating Methodology