Urbi Drops Out of B Range

Urbi Drops Out of B Range

Mexico Corporate & Sovereign Strategy

Fitch has downgraded Mexican homebuilder Urbi Desarrollos Urbanos (Urbi)’s rating to CCC from B, citing a liquidity decline and negative cash flow, that have greatly increased the risk of default. The homebuilder had negative cash flow of MXP7.8bn ($610m) in 2012, leading to total cash and marketable securities plummeting to MXP2.1bn at year-end, from MXP5.5bn the year before. “The company has covered its cash drain with incremental debt increases,” Fitch says, noting the company is not in a pos

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