Grupo Bimbo S.A.B. de C.V.

The negative outlook reflects our view that Bimbo continues to face downside risks related to the integration of its most recent acquisitions, difficult economic conditions in certain markets, and raw material price and exchange rate volatility. These risks could delay the company's deleveraging. We could lower the ratings if Bimbo's adjusted debt-to-EBITDA ratio doesn't near 3.0x and discretionary cash flow (DCF) to debt approaches 5% in the next 12 months. This could occur if the company engages in an aggressive investment plan that requires additional debt, or if EBITDA margins worsen due to challenging economic conditions across its core regions. We could revise the rating outlook to stable in the next 12 months if Bimbo continues improving its financial performance

...Geographically diversified and presence in both mature and emerging markets.Grupo Bimbo S.A.B. de C.V. (Bimbo) operates in 32 countries in North America, Latin America, and Europe, Middle East, and Africa (EMEA). The company has significantly reduced its concentration in Mexico by successfully expanding its geographic footprint to both mature and emerging markets, which now represent 57% and 43%, respectively. The scale and strength of its business, along with its highly recognized brands, have allowed the company to strengthen its market position, becoming a key player in all its operating regions....

Full Report