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 it 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. During the first nine months of 2006, the effect of higher raw material costs and expenses, as well as the consolidation of its latest acquisitions, were partially offset by the decrease in operating expenses
