Moody's may drop Grupo Bimbo

Moody's de Mexico said it placed Grupo Bimbo, SAB de CV's Baa2 senior regular bond/debenture and Aa1.mx Mexican national-scale ratings on review for possible downgrade.

The outlook is under review.

The review was prompted by Bimbo's announcement that it has reached an agreement to purchase Sara Lee's North American Fresh Bakery unit in cash for $959 million, Moody's said.

The transaction will improve Bimbo's scale, diversification and share in the U.S. baked goods market. However, it will also expose Bimbo to the low margins that Sara Lee's NAFB business has exhibited over the past several years and increase the company's financial leverage, as the majority of the purchase price will be funded with incremental debt.

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