Moody's Lowers Homex

Moody's Lowers Homex

Mexico Corporate & Sovereign Strategy

Moody's has downgraded Desarrolladora Homex's debt rating to Caa2 from B2, it says. The move is based on Barclays and Credit Suisse initiating court proceedings against the Mexican homebuilder for $70m in payments relating to the termination of derivative contracts. "If the resolution goes against Homex it would trigger a default event that allows creditors to accelerate all of the company's dollar denominated debt, for which Homex does not have the liquidity capacity to handle," Moody's says. T

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