UBS highlights Grupo Bimbo as a defensive emerging market credit pick following record 1Q26 EBITDA margins and declining leverage. The analyst favors the USD 5.375% 2036 bond for its potential to outperform similarly rated securities.
Key Takeaways
- 1.Grupo Bimbo reported its widest-ever first quarter EBITDA margin of 14.0% in 1Q26, driven by favorable pricing and product mix.
- 2.Company leverage is on a downward trend, decreasing to 3.3x in March 2026 from 3.4x in late 2025.
- 3.UBS recommends the USD-denominated 5.375% 2036 bond as a defensive trade suitable for hold-to-maturity strategies.
Table of Contents
- Grupo Bimbo: Global bakery
- Emerging market bonds
- Good 1Q26
- Leverage declines...
- ... and refinancing risk remains low
- Credit ratings
- Risk factors
- Our bottom line
- Required disclosures
- UBS CIO risk views
- UBS CIO valuation views
- Issuer valuation views
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Authors
Donald McLauchlan
Securities
Bimbo Bakeries USA, Inc. 5.375% 2036 bond
Themes
Credit DeleveragingDefensive Emerging Market Strategy
Regions
Latin AmericaNorth AmericaMexicoUnited StatesCanada