S&P assigns Bimbo Bakeries USA notes BBB

S&P said it assigned its BBB issue-level rating to Bimbo Bakeries USA Inc.'s planned senior unsecured notes for up to $600 million. Bimbo Bakeries USA is a subsidiary of Grupo Bimbo SAB de CV.

The notes will be guaranteed on a senior basis by Grupo Bimbo and two unrated subsidiaries Bimbo SA de CV and Barcel SA de CV. Therefore, the proposed notes will rank equally with all the senior unsecured debt issued at the parent level. Moreover, on the issuance date, S&P noted the notes will represent less than 15% of Grupo Bimbo's total consolidated debt.

“We assign the same BBB issue-level rating to the proposed notes as the existing issue-level ratings on Grupo Bimbo's various senior unsecured notes because we believe that the proposed issuance mirrors Grupo Bimbo's credit quality. This is based on the guarantee package that is in our view eligible and qualifies for a rating substitution given that it complies with the following factors,” the agency said in a press release.

The company plans to use the net proceeds of the issuance to refinance existing debt, specifically the drawn amount under the syndicated revolving credit facility that it recently used to redeem Grupo Bimbo's 2022 notes.

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