S&P: Homex unchanged

Standard & Poor's said Desarrolladora Homex SAB de CV's (BB-/stable) announcement that it received approval from shareholders for a $250 million share repurchase program does not have an immediate impact on the issuer's rating or outlook.

S&P said it expects buybacks to be limited to $10 million in 2008 to meet Homex's obligations under its executive stock option program and that additional buybacks would not exceed its free operating cash flow generation.

Given expectations of significant working capital requirements to fund its operations, the agency said it believes the company's ability to buy back shares is very limited. Therefore ratings could be downgraded if Homex's share buybacks leads to additional debt or a significant reduction in its cash balance.

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