Moody's cuts Sare

Moody's de Mexico said it downgraded the national-scale senior unsecured debt rating of Sare Holding, SAB de CV to Baa1.mx, from A3.mx.

Concurrently, Moody's said it also affirmed Sare's global local currency senior unsecured debt rating at Ba3 while the outlook was revised to negative from stable.

These ratings actions reflect the weakening of Sare's operating profits and its credit metrics, specifically interest coverage, debt to EBITDA and leverage levels, the agency said.

Furthermore, the company's incremental high rise construction of middle and higher income buildings has placed and will continue to place pressure on the company's receivables collection cycle, which has been extended towards the end of year, Moody's noted.

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