Standard&Poor's Ratings Services' ratings on Grupo Bimbo S.A.B. de C.V. (Bimbo) reflect Bimbo's leading position in Mexico's bread-baking industry, its low-cost position, and its extensive distribution network. The ratings also reflect Bimbo's more aggressive financial profile following the acquisition of George Weston Ltd.'s western operations, in addition to the challenges Bimbo still faces integrating and improving the operation of the acquired unit. Bimbo's consolidated sales and volumes continue to increase, driven by new product launches, increasing demand, and recent acquisitions in Mexico and Latin America. During 2006, the effects of higher raw material costs and expenses, as well as the consolidation of Bimbo's latest acquisitions, were offset by a decrease in operating expenses and some price increases, mainly
