S&P downgrades Urbi

Standard & Poor's said it lowered the global scale ratings on Desarrollos Urbanos Urbi SAB de CV (Urbi) to CCC- from CCC.

The agency also said it affirmed the company's mxCCC national scale rating and removed the ratings from CreditWatch negative, where it was placed in March.

The outlook is negative.

The downgrade reflects a perception that Urbi may default in the next few months, absent unanticipated and significantly favorable changes in its circumstances, S&P said.

New signals suggest that Urbi's liquidity has drained further in the past month or so, the agency said.

This provides us with additional evidence that the company is in financial distress, S&P said.

Urbi's drained liquidity and difficulties in refinancing its debt is likely to cause a default within the next six months, the agency said.

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