The ratings reflect Grupo Bimbo S.A. de C.V.'s (Bimbo) leading 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's western operations and the challenges it faces in integrating and improving the operation of the acquired unit. The foreign currency rating reflects the sovereign foreign currency rating for the United Mexican States. Bimbo continues to increase consolidated sales and volumes as a result of the launch of new products, increasing demand, and recent acquisitions in Mexico. Nevertheless, the company's operating margins have decreased as a result of higher operating expenses and raw material costs. Although some of these expenses
