Fitch: Grupo Bimbo notes BBB

Fitch Ratings said it assigned a rating of BBB to Grupo Bimbo, SAB de CV's proposed senior notes issuance up to $800 million due 2022.

The proceeds are expected to be used to refinance existing debt.

The ratings are supported by its important size and scale within the global bakery industry, strong brand recognition and positioning in the markets where it operates and its extensive distribution network that provides a key competitive advantage, Fitch said.

The ratings also incorporate the company's geographic diversification, as well as a broad brand product portfolio covering a wide consumer base, the agency said.

Fitch said it considers that Bimbo participates in a relatively stable industry that is less exposed to economic downturns, which has led to low volatility in Bimbo's revenues and margins.

The ratings are tempered by higher than historical debt levels, as a result of the company's recent acquisitions, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.