S&P lowers Empresas ICA

Standard & Poor’s said it lowered the global scale rating on Empresas ICA SAB de CV to CC from CCC+ and the national scale rating to mxCC from mxB-.

The agency also said it lowered the ratings to C from CCC.

The 5 recovery rating on the company’s senior unsecured notes due 2017, 2021 and 2024 is unchanged, indicating 10% to 30% expected default recovery.

The ratings also were placed on CreditWatch negative.

The downgrade follows news that Empresas ICA entered into the 30-day grace period with respect to the $31 million interest payment on its senior notes due 2024.

The ratings reflect a view that there is a very high probability that the company won’t make the payment during this period, given the weakness in its liquidity position and financial performance, S&P said.

If the company doesn’t make interest payment on the 2024 notes within the grace period, the agency said it will downgrade it to D (default) or SD (selective default).

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