Moody's affirms Bimbo

Moody's Investors Service said it affirmed Grupo Bimbo, SAB de CV's senior unsecured issuer rating at Baa1 and its Mexican national-scale senior unsecured rating at Aaa.mx, but changed the outlook to stable from positive.

The agency said that the change in outlook was primarily prompted by the weaker than anticipated operating performance of Bimbo's important U.S. operations over the past year and a half.

According to Moody's, key support factors for Bimbo's Baa1 and Aaa.mx ratings include the company's strong credit metrics for the rating category, stable cash generation and its above-average franchise strength and distribution capabilities, which are underpinned by strong brand equity and an extensive, well-articulated distribution network in the Mexican packaged food markets.

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