S&P cuts Empresas, notes

Standard & Poor's said it lowered its global scale corporate credit rating on Empresas ICA SAB de CV to CCC+ from B and its national scale rating to mxB- from mxBBB-.

At the same time, the agency lowered the issue-level rating on the senior unsecured notes to CCC from B-. The 5 recovery rating on the senior unsecured notes due 2017, 2021 and 2024 remains unchanged, which indicates a "modest" (10% to 30%) expectation for recovery in the event of a payment default.

The outlook remains negative.

S&P said it downgraded Empresas ICA because it believes its liquidity position has deteriorated due to low cash flow generation amid depressed operating results at the company's civil construction segment.

Also, Empresas ICA continues to face significant short-term debt maturities, while the weakening Mexican peso has increased the burden of dollar-denominated debt. Therefore, the agency considers that Empresas ICA is dependent on favorable market conditions to meet its financial commitments.

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