Fitch: Grupo Bimbo view stable

Fitch Ratings said it affirmed Grupo Bimbo, SAB de CV's issuer default rating at BBB, local-currency issuer default rating at BBB, national scale long-term rating at AA+(mex), local certificados bursatiles issuances Bimbo 02-2, Bimbo 09, Bimbo 09U and Bimbo 09-2 at AA+(mex) and $800 million senior notes due 2020 at BBB.

The outlook was revised to stable from positive.

The ratification follows news that Grupo Bimbo plans to purchase the North American fresh bakery division of Sara Lee for $959 million, Fitch said.

The transaction will be funded by $700 million from bank term loans and existing cash holdings, the agency said. As a result, Fitch estimated a total debt-to-EBITDA ratio of 2.4x, Fitch said.

The stable outlook reflects an expectation that Grupo Bimbo will maintain an important cash flow generation and will use available cash towards debt reduction strengthening its financial position, the agency added.

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