Fitch rates Bimbo notes BBB

Fitch Ratings said it assigned a BBB rating to Grupo Bimbo, SAB de CV's issuance of up to $650 million of senior unsecured notes due 2047.

The notes will be guaranteed by its subsidiaries Bimbo, SA de CV, Barcel, SA de CV and Bimbo Bakeries USA, Inc., and will rank pari passu with Bimbo's existing senior unsecured debt.

Proceeds are expected to be used for general corporate purposes, including repaying existing indebtedness related to the East Balt Bakeries acquisition.

Fitch said the ratings incorporate Bimbo's solid business position as a global leading producer of baked goods with operations in Mexico, the United States, Canada, Latin America, Europe and in a lesser extent in Asia and Africa.

“The company has a product portfolio of well-known brands with leading positions in markets in which it participates,” the agency said in a news release.

“Bimbo has maintained relatively stable market positions across its territories despite strong competition in markets such as the U.S., Canada and Iberia. The company's competitive advantages include its position as a low-cost producer and an extensive distribution network among its main markets.”

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