Moody's rates Urbi notes Ba3

Moody's Investors Service said it assigned a provisional Ba3 global scale foreign-currency rating to Urbi Desarrollos Urbanos, SAB de CV's proposed dollar-denominated senior unsecured debt issuance.

The new notes will rank pari passu with other unsecured debt and will be guaranteed by Ingenieria y Obras, SA de CV, Obras y Desarrollos Urbi, SA de CV, Cyd Desarrollos Urbanos, SA de CV, Tec Diseno e Ingenieria SA de CV, Promocion y Desarrollos Urbi, SA de CV, Propulsora Mexicana de Parques Industriales, SA de CV, Urbi Construcciones del Pacifico, SA de CV, Constructora Metropolitana Urbi, SA de CV y Financiera Urbi, SA de CV, Sofom ENR.

The company will hedge all of the interest and principal against foreign-exchange risk, Moody's said.

The proceeds from this new issuance will be used to refinance existing debt, much of it short-term, the agency said.

With this proposed issuance, Urbi will have no substantial debt maturities for the next three years, a credit plus, Moody's said.

Urbi's primary credit challenges are its exposure to high-, middle-, and upper-income sectors, where financing from banks and other financial institutions has been restricted, the agency said.

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