Fitch affirms Bimbo

Fitch Ratings said it affirmed Grupo Bimbo, SAB de CV's issuer default rating at BBB, local-currency issuer default rating at BBB, $800 million senior notes due 2020 at BBB, $800 million senior notes due 2022 at BBB, national scale long-term rating at AA+(mex) and local certificados bursatiles issuances at AA+(mex).

The outlook is stable.

Bimbo's ratings are supported by its significant size and scale within the global bakery industry, strong brand recognition and positioning, and extensive distribution network that provides a key competitive advantage, the agency said.

The ratings also consider the company's stable operations with historically low volatility in revenues and margins, diversified revenue base and positive free cash flow generation, the agency noted.

The ratings are tempered by higher than historical debt levels, as a result of its recent acquisitions, Fitch said.

The affirmations reflect expectation that Bimbo's operating performance will face a challenging year in 2012, due in part to volatility in commodities prices and exchange rates, the agency said.

The company's ratio of total debt to EBITDA was 2.9 times.

© 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.