Moody's may boost Bimbo

Moody's Investors Service said it placed on review for possible upgrade Grupo Bimbo SA de CV's Baa2 global local senior unsecured issuer rating and its Aa1(mx) national-scale rating.

The ratings review reflects the strengthening of Bimbo's credit metrics and the company's gradual progress in improving profitability in its United States and South and Central American operations, following a history of underperformance in those regions, the agency said.

Moody's noted that the rating review will focus on the likelihood that consolidated credit metrics will be sustained close to current levels in light of possible cash financed acquisitions and intense capital expansion plans as well as Bimbo's ability and strategy to further improve performance of its important U.S. subsidiary, Bimbo Bakeries USA, Inc.

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