S&P trims Grupo Bimbo outlook to negative

S&P said it affirmed its BBB global scale and mxAA+ national scale corporate credit and debt ratings on Grupo Bimbo SAB de CV and revised the outlook on the corporate credit ratings to negative from stable.

“The outlook revision reflects our expectation that Bimbo's deleveraging, following East Balt Bakeries' (now Bimbo QSR) acquisition, may take longer to materialize,” S&P said in a news release.

“In our view, despite the likely operating improvement in 2018 after the lower-than-expected performance in 2017, Bimbo could continue pursuing acquisitions, which coupled with intensive capital expenditures this year, could lead to a deviation from our previous scenario, in which we forecasted the company's adjusted debt-to-EBITDA ratio would trend to below 3.0x by the end of 2018.”

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