Moody's cuts Sare

Moody's Investors Service said it downgraded the national scale senior unsecured debt rating of Sare Holding, SAB de CV to Ba1.mx, from Baa2.mx, along with its global local-currency senior unsecured debt rating to B2 from B1.

The outlook was revised to stable from negative.

The adverse operating environment derived from the financial crisis and significant economic contraction have depleted the company's liquidity, Moody's said, and lowered the availability of bridge financing in the housing sector.

The ratings reflect Sare's business model as a home developer for all income sectors of the market, its land reserve strategy, good position in markets with strong demographic growth, limited regional concentration and experienced management team that has been able to withstand periods of severe economic stress, the agency said.

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