The ratings reflect Grupo Bimbo S.A. de C.V.'s (Bimbo) leader position within the bread industry in Mexico, its low cost position, and its extensive distribution network. The rating also reflects the more aggressive financial profile following the acquisition of George Weston Western's (GWB) operations and the challenges it faces in integrating and improving the operation of the acquired unit. Bimbo continues to increase sales and volumes in Mexico and the U.S. as a result of the launch of new products and increasing demand. Nevertheless, the company's operating margins have decreased as a result of higher operating expenses and higher raw material costs. Although some of these expenses are expected to be non-recurrent, the company's margins are likely to continue to
