Fitch rates Urbi notes BB

Fitch Ratings said it assigned a BB international scale rating to Urbi Desarrollos Urbanos SA de CV's proposed offering of up to $150 million senior notes due 2016 and affirmed the company's A+(mex) national scale rating. The outlook is stable.

Proceeds from the offering will be used to repurchase local Certificados Bursatiles issuances equivalent to $136 million and repayment of other loans.

Fitch said the ratings reflect Urbi's strong market position, increasing geographic and customer diversification, significant land reserve and manageable financial profile. Over the last five years, revenue has experienced a rapid 18.7% compound annual growth rate.

The ratings also reflect the company's exposure to the developing Mexican mortgage market, as it operates in the highly fragmented but rapidly consolidating Mexican homebuilding industry, the agency said. Urbi is also exposed to liquidity risks and working capital constraints associated with the timing of government-related mortgage funding of low-income homes.

Total debt to EBITDA was 1x at Dec. 31.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.