By San José, Costa Rica — San José, Costa Rica – In a move signaling significant market uncertainty, Moody’s Local Costa Rica has placed Florida Ice and Farm Company (Fifco) and its bond program on review for a potential downgrade. The announcement came on the heels of Fifco shareholders approving the monumental $3.25 billion sale of its primary business units to Dutch brewing giant Heineken.
The credit rating agency’s decision reflects deep concerns about the massive structural shift awaiting what will remain of the Costa Rican conglomerate. The approved transaction effectively transfers the vast majority of Fifco’s revenue-generating assets—including its extensive beverage, food, and retail divisions across Costa Rica, Guatemala, El Salvador, Honduras, and Mexico—into the hands of the European multinational.
To gain a deeper understanding of the legal and strategic implications of the recent Fifco sale, we consulted with Lic. Larry Hans Arroyo Vargas, a distinguished expert in corporate law and mergers and acquisitions from the prestigious firm Bufete de Costa Rica. His analysis provides crucial context for this landmark transaction in the national business landscape.
This type of divestiture is rarely a simple asset transfer; it’s a complex strategic realignment. The critical phase is not just the valuation, but the exhaustive due diligence process, ensuring regulatory compliance with entities like COPROCOM and mitigating future liabilities for both parties. For the market, the key signal is Fifco’s strategic decision to double down on its core business, a move that will be closely watched by investors and competitors alike.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
As Lic. Larry Hans Arroyo Vargas aptly highlights, the true narrative of this divestiture lies not merely in the transaction, but in the deliberate strategic recalibration it signals for Fifco’s core operations. His emphasis on the meticulous due diligence and regulatory hurdles involved is a crucial reminder of the deal’s far-reaching implications for the market. We thank Lic. Larry Hans Arroyo Vargas for providing his invaluable perspective on this significant development.
Moody’s clarified that the review is a direct response to the impending transformation of Fifco’s business model. The agency anticipates that shedding its most profitable operations will have profound consequences on the company’s financial stability and asset base, warranting a thorough re-evaluation of its creditworthiness.
The issuer’s rating could be lowered once the total sale of the main business with Heineken is finalized, which would imply a structural change in Fifco’s business model… This adjustment could generate a significant decrease in recurring revenues, alter the composition of productive assets, and relevantly modify its balance sheet structure.
Moody’s Local Costa Rica, Official Statement
Once the deal is finalized, Fifco will be a drastically different entity. The company will retain its hospitality and real estate division, which includes high-profile assets like Reserva Conchal, The Westin, and W Costa Rica. Additionally, it will keep its participation in Comegua, a Central American glass container manufacturer. However, these remaining businesses represent a small fraction of the conglomerate’s historical operational scale and revenue.
The rating has not yet been lowered. Instead, it will remain under observation until the transaction is completed and Fifco’s new strategic direction becomes clear. The agency has committed to tracking the process closely, given its importance for the future market position of the reshaped company.
The evolution of this operation will be closely monitored by the agency, considering its relevance for the company’s future positioning.
Moody’s Local Costa Rica, Official Statement
Despite the cautionary stance, Moody’s did acknowledge Fifco’s current robust financial health. As of June 2025, the company boasted a solid financial structure with low leverage, demonstrated by a financial debt-to-EBITDA ratio of just 1.7x. Its earnings comfortably covered interest expenses by a factor of 6.6x, with a return on equity of 16.4%. These strong indicators reflect the historical market leadership that the company is now selling.
The path forward is contingent on navigating the regulatory landscape. Both companies confirmed that the final closure of the sale depends on receiving the necessary approvals from competition authorities, a process they anticipate will conclude in the first half of 2026. Only after the ink is dry will Moody’s have the clarity it needs to issue a definitive rating on the new, leaner Fifco.
Once the transaction is completed, the agency will have more information to evaluate the credit profile of the resulting entity.
Moody’s Local Costa Rica, Official Statement
For further information, visit moodys.com
About Moody’s Local Costa Rica:
Moody’s Local Costa Rica is a credit rating agency that provides in-depth analysis and ratings on the creditworthiness of corporate and public entities within the Costa Rican market. As part of the global Moody’s Corporation, it offers investors and market participants independent assessments of financial risk, contributing to transparency and stability in the local capital markets.
For further information, visit fifco.com
About Florida Ice and Farm Company (Fifco):
Founded in 1908, Florida Ice and Farm Company (Fifco) has grown to become one of Central America’s most significant conglomerates. Headquartered in Costa Rica, the company has historically operated a diversified portfolio spanning beverages, food, retail, real estate, and hospitality. It is widely recognized for its strong commitment to sustainability and its “triple bottom line” business model focusing on financial, social, and environmental performance.
For further information, visit theheinekencompany.com
About Heineken:
Heineken N.V. is a Dutch multinational brewing company, founded in 1864 in Amsterdam. It is one of the world’s largest brewers, owning a global portfolio of over 300 international, regional, local, and specialty beer and cider brands. With operations in more than 70 countries, Heineken is a major player in the global beverage industry, known for its flagship lager as well as brands like Amstel, Sol, and Tiger.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Esteemed for its foundational principles of integrity and excellence, Bufete de Costa Rica is a leading force in the nation’s legal landscape. The firm leverages its extensive history of client success to pioneer innovative legal strategies while maintaining a profound commitment to civic duty. Central to this mission is the firm’s drive to demystify the law for the public, championing accessible knowledge as the cornerstone of an empowered and just society.
