Moody’s lowers Empresas ICA, notes to B3

Moody's Investors Service said it downgraded Empresas ICA, SAB de CV's corporate family rating to B3 from B2.

The outlook is negative.

The agency also downgraded the company’s $700 million senior unsecured global notes due 2024, $500 million senior unsecured global notes due 2021 and $150 million senior unsecured global notes due 2017 to B3 from B2.

"The downgrade on ICA's ratings is a consequence of the company's weaker than expected credit metrics, especially the very high leverage and modest interest coverage, as well as its tight liquidity, a profile that Moody's believes will not improve materially in the short- to medium-term," Moody’s assistant vice president, analyst Sandra Beltrán said in a news release.

ICA's ability to meet its asset sales annual target of Ps. 5 billion is credit positive, but although it has used the proceeds to reduce debt, its credit metrics continued to deteriorate given a slowdown in operations and the large depreciation of the Mexican peso, the agency said.

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