Moody's: Grupo Bimbo unchanged

Moody's Investors Service said that on Nov. 5, Grupo Bimbo, SAB de CV (Baa1, positive) announced its intention to pursue a joint proposal for the reorganization of Interstate Bakeries Corp. (unrated) along with Yucaipa Companies, LLC and International Brotherhood of Teamsters.

The agency said that the announcement does not result in any immediate impact on Grupo Bimbo's ratings or outlook, given that the transaction currently remains in a preliminary due diligence stage.

However, Grupo Bimbo's ratings would be put under review for downgrade if the company and its partners filed a formal reorganization plan following the due diligence process, Moody's noted.

The move to review for downgrade would reflect the increase in the company's exposure to the highly competitive, low margin U.S. baked goods market after the addition of Interstate, the agency added.

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