Fitch cuts Homex, keeps on review

Fitch Ratings said it downgraded Desarrolladora Homex, SAB de CV's ratings as follows:

• Foreign currency issuer default rating to B from BB-;

• Local currency issuer default rating to B from BB-;

• $250 million in senior notes due 2015 to B/RR4 from BB-;

• $250 million in senior notes due 2019 to B/RR4 from BB-; and

• $400 million in senior notes due 2020 to B/RR4 from BB-.

The ratings remain on Rating Watch Negative.

Fitch said the downgrades reflect its expectations that Homex's operating results in the first half of 2013 will remain under significant pressure, resulting in continued negative free cash flow and rising leverage.

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