S&P affirms Corporación Geo

Standard & Poor's said it affirmed its ratings, including the BB- global-scale and mxA- national-scale long-term corporate credit ratings, on Corporación Geo SAB de CV.

The outlook is stable.

The agency said that the ratings on Geo are limited by the company's aggressive financial policy and accounting practices, and intense working capital requirements to sustain its growth targets.

They also reflect its concentration of mortgage originations in public housing agencies, the degree of political risk inherent to these institutions, and increased competition, as risk factors inherent in the Mexican homebuilding industry, S&P noted.

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