Leading position in Mexico's packaged-bread industry and stronger market position in the U.S. Significant brand recognition. Geographic and product diversification. Strong liquidity. Debt-financed growth strategy. Low profitability margins compared with its peers. Operation in the highly competitive U.S. fresh baked goods industry. Standard&Poor's Ratings Services' ratings on Grupo Bimbo, S.A.B. de C.V. (Bimbo) reflect its leading position in Mexico's packaged-bread industry, stronger market position in the U.S., significant brand recognition, and geographic and product diversification. The ratings also reflect Bimbo's "strong" liquidity. Partly mitigating factors are the company's debt-financed growth strategy, low profitability margins compared with its peers, and operation in the highly competitive U.S. fresh baked goods industry. We consider the company's business risk profile as "satisfactory"
