Moody's: Bimbo view to negative

Moody's de Mexico said it changed Grupo Bimbo, SAB de CV's ratings outlook to negative from stable.

At the same time, the agency affirmed Bimbo's Baa2 long-term issuer rating, as well as its Baa2 and Aa1.mx senior unsecured ratings.

Moody's said the negative outlook was prompted by Bimbo's Feb. 12 announcement that it agreed to acquire 100% of the common shares of Canada Bread Co. Ltd. for C$1.83 billion ($1,665,000,000) with the proceeds from a five-year committed revolving credit facility.

"Although the transaction is strategic to Bimbo as it would allow for further revenues diversification, it would also put short term pressure on the company's leverage," Moody's analyst Alonso Sanchez said in a news release.

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