Moody's rates Bimbo notes Baa2

Moody's Investors Service said it assigned a Baa2 global-scale rating to Grupo Bimbo, SAB de CV's proposed senior unsecured fixed-rate global notes due 2022 for an amount up to $800 million.

The proceeds will be used to refinance existing debt.

The outlook is stable.

The rating on the proposed notes is supported by the company's position as the largest baked-goods company in Mexico and in the United States after the acquisition of Sara Lee's North American Fresh Bakery business, Moody's said.

The ratings also reflect its ample distribution infrastructure in its key markets, sustained free cash flow generation, geographic diversification, experienced management team and prudent financial policies, the agency said.

These credit positives are partly offset by the competitive nature of its markets and some volatility in Latin America, Moody's said.

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