Moody's cuts Industrias Unidas notes to Caa1

Moody's Investors Service said it downgraded Industrias Unidas, SA de CV's corporate family rating to B3 from B2 and the $200 million of guaranteed senior unsecured notes due 2016 issued by to Caa1 from B3.

The outlook is negative.

Moody's said the downgrades were driven by weaker credit protection metrics and liquidity and likely continued sales volume and margin pressure for the next couple of years due to persistent weakness in U.S. housing starts and commercial construction.

The Caa1 rating on the notes reflects concern that the issuer and the guarantors of the notes may not have sufficient cash and operating cash flow to fund all coupon payments due over the next two years, the agency said.

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