S&P cuts Urbi to D

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

The rating action follows Urbi's failure to pay its $6.4 million interest expense due April 19, the agency said.

The company announced it had decided to avail itself of the 30-day grace period on the interest payment on its bond due 2016.

"Although Urbi is allowed to make the interest payment within a 30-day grace period, its criteria requires us to apply a D rating when we believe such payment will not occur within five business days and when we believe this default signals a general default as obligations come due," said S&P credit analyst Fernanda Hernandez.

In its opinion, Urbi's default on the $6.4 million interest payment reflects the company's massive financial distress, S&P added.

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