S&P: Geo on watch

Standard & Poor's said it placed its BB long-term corporate credit rating and its mxA/mxA-2 national-scale rating on Corporacion Geo SAB de CV on CreditWatch with negative implications.

The agency said it also placed its mxA/mxA-2 national-scale rating on the company's debt obligations issued in the local market on CreditWatch negative.

The rating action is based on the company's unexpected aggressiveness regarding its financial policy and accounting practices, S&P noted, adding that the aforementioned is reflected in the disclosure of restricted cash balances and contingent financial obligations that led to restatement of the group's audited financial statements and interim financial statements for the year ended Dec. 31 and third-quarter 2006.

To date, the ratings on Geo reflects its position as one of the largest homebuilders in Mexico, its nationwide presence, its increased participation in the economic, middle-income and residential housing segments and its adequate liquidity, the agency added.

© 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.