Fitch downgrades GEO

Fitch Ratings said it downgraded Corporacion GEO, SA de CV's foreign-currency issuer default rating to RD (restricted default) from C, local-currency issuer default rating to RD from C and national long-term rating to RD(Mex) from C(Mex).

The agency also said it downgraded the company's Ps. 400 million certificados bursatiles due 2014 to D(Mex) from C(Mex).

The company also said it affirmed its $54 million senior notes due 2014 at C with a recovery rating of RR4, $250 million senior notes due 2020 at C with a recovery rating of RR4 and $400 million senior notes due 2022 at C with recovery rating of RR4.

The downgrades are a result of the company's failure to make a Ps. 2.4 million interest payment on its Ps. 400 million certificados bursatiles that was due on April 26, 2013, Fitch said, and was not cured during the grace period that expired May 6.

The ratings will be revised once the company announces and executes the next steps related to its debt-restructuring process, Fitch said.

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