The ratings on Grupo Bimbo S.A. de C.V. (Bimbo) reflect Bimbo's leading position in the bread-baking industry in Mexico, its low cost position, and its extensive distribution network. The ratings also reflect the more aggressive financial profile following the acquisition of George Weston Ltd.'s western operations and the challenges Bimbo still faces in integrating and improving the operation of the acquired unit. Bimbo continues to increase consolidated sales and volumes as a result of the launch of new products, increasing demand, and recent acquisitions in Mexico. Despite some pressure on raw material costs and expenses during first-quarter 2006, the EBITDA margins remains in line with the same period of time in 2005. The United States market continues its growth trend.
