Moody's reviews Bimbo

Moody's Investors Service said it placed Grupo Bimbo, SAB de CV's Baa1 senior unsecured issuer rating and Aaa.mx Mexican national scale rating on review for downgrade.

The review was prompted by Bimbo's announcement that it agreed to acquire the fresh bakery business of Weston Foods, Inc. for $2.38 billion in a fully debt-financed deal.

"We expect the transaction to materially alter Bimbo's business profile, with the competitive U.S. baked goods market gaining in importance, and to weaken credit metrics because of incremental, acquisition-related debt," Moody's vice president Sebastian Hofmeister said in a statement.

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