Moody's rates Urbi notes Ba3

Moody's Investors Service said it assigned a Ba3 senior unsecured rating to Mexico-base Urbi Desarrollos Urbanos SA de CV's $150 million notes and a Ba3 corporate family rating to the company. The outlook is stable.

The company plans to use the proceeds to refinance existing debt.

Moody's said the ratings reflect Urbi's strong financial position and the financial flexibility that has allowed it to respond effectively to the volatile Mexican property market. Urbi has produced consistently sound profitability and maintained good liquidity, with a conservative capital structure.

Urbi's primary credit challenges are its reliance on the Mexican economic and political environment, the important role the government plays in supporting housing policy and the high costs of land and land development, the agency said. Furthermore, the housing development market is fragmented and homes are built on a predominately speculative basis.

At Dec. 31, Urbi's debt to EBITDA was 1x.

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