Fitch assigns BB- to Corporacion GEO notes

Fitch Ratings said it assigned a BB-/RR3 rating to the up to $200 million of Corporacion Geo SAB de CV proposed senior notes due in up to 10 years.

Proceeds from the issuance will be used to refinance current debt as well as for working capital needs.

Fitch also assigned the following ratings: Local currency issuer default rating at B+ and the foreign currency IDR at B+. The outlook is stable.

Fitch said the ratings reflect GEO's strong market position in the highly fragmented Mexican homebuilding industry; its geographic and product diversification, significant land reserve using different acquisition schemes and its adequate financial profile.

GEO's ratings are constrained by its dependency on financing government-related mortgage funding of low-income homes and high working capital requirements related to the operation, Fitch said.

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