Standard & Poor's Ratings Services said on November 11 that its ratings and outlook on AmBev-Companhia de Bebidas das Americas will not be affected by the announcement of the company's third-quarter 2003 results, according to Reuters.

AmBev continued to report strong results despite a 12% decrease in beer volumes in its Brazilian operations. The positive results were led mainly by improvements in sales mix, distribution efficiency, and point-of-sale execution. The decrease in beer volumes resulted from an aggressive marketing campaign and brand repositioning of AmBev's competitor Schincariol during this period, as well as a larger-than-expected delay in the price realignment of AmBev's competitors after the company readjusted its prices in June 2003. AmBev reported a consolidated EBITDA margin of 34.1% in the first nine months of 2003, compared with the pro forma 31.6% reported in the same period last year.

Standard & Poor's expects that AmBev's operations will continue to absorb additional gains from its ongoing cost and expenses real savings efforts, and the positive economic trends for the Brazilian economy in 2004 could further strengthen AmBev's already very positive results. In September 2003, the company reported short-term debt of $610 million, about $300 million above that reported in June 2003, reflecting the migration of the syndicated loan due August 2004 from long-term to short-term. Nonetheless, the successful conclusion of AmBev's $500 million PRI bonds issuance in September, coupled with about $700 million EBITDA in the first nine months of 2003, have strengthened the company's cash position (about $1 billion as of September 2003) and further reinforced AmBev's solid liquidity position.

12 November, 2003