On March 22, 2002, Standard&Poor's lowered its local currency rating and affirmed its foreign currency rating on Grupo Bimbo S.A. de C.V. The downgrade is due to the company's more aggressive financial profile following the recent acquisition of George Weston Western operations and the challenges involved in integrating and improving the operation of the acquired unit. One of the challenges is that approximately 30% of the company's total sales will be generated in the U.S., where the company will face stronger competition and lower operating margins. The ratings also reflect the company's leader position within the bread industry in Mexico, its low cost position, and its extensive distribution network. Bimbo is the largest producer of bread products in
