Standard&Poor's Ratings Services' ratings on Grupo Bimbo S.A.B. de C.V. reflect the firm's satisfactory business profile, as reflected in its leading position in Mexico's packaged-bread industry, strengthened market position in the U.S., geographic and product diversification, and ability to maintain profit margins under adverse economic conditions. However, the ratings also reflect the company's increased debt-financed growth strategy, low organic sales volume growth, and operation in the highly competitive fresh baked goods industry in the U.S. On Nov. 9, 2010, Bimbo announced an agreement to acquire the Northern American fresh bakery business of Sara Lee Corp. (BBB/Stable/A-2; Sara Lee NAFB) for $959 million, in a transaction we expect will complete in third-quarter 2011. Bimbo plans to finance this transaction
