S&P revises Javer to negative

S&P said it revised the outlook on Servicios Corporativos Javer, SAB de CV to negative from stable.

At the same time, the agency affirmed the BB- corporate credit rating on the company and the BB- issue-level rating on its senior unsecured notes due 2021.

The recovery rating remains at 4 (rounded estimate 45%), indicating an expectation for average recovery prospects for the bondholders in the event of a payment default.

The outlook revision reflects Javer's weaker-than-expected operating performance stemming from the contraction of its units sold in its affordable entry level segment as a result of the drop in the federal housing subsidy last year, S&P explained.

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