Fitch affirms Gruma

Fitch Ratings said affirmed Gruma, SAB de CV's foreign- and local-currency long-term issuer default ratings at B+ following the forced sale of its Venezuelan assets to the government of Venezuela.

The outlook is stable.

The affirmation considers the expected effects on Gruma's credit quality of the forced acquisition of Molinos Nacionales CA, Gruma's Venezuelan subsidiary, by the Venezuelan Government, according to the agency.

Ratings are supported by Gruma's solid business profile as one of the leading producers of corn flour and tortillas in the United States and corn flour in Mexico and Central America, the agency said.

Ratings are limited by limited pricing flexibility in some of its markets, such as Mexico, continued competitive pressures and the high volatility in the prices of corn and wheat, and high leverage, the agency noted.

The company's competitive advantages include strong brand equity, broad distribution systems, proprietary technology, economies of scale and diversified product lines, Fitch said.

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