Fitch lowers Urbi Desarrollos

Fitch Ratings said it downgraded the following ratings for Urbi Desarrollos Urbanos, SAB de CV:

• Foreign currency issuer default rating to C from CCC;

• Local currency issuer default rating to C from CCC;

• National long-term rating to C(Mex) from CCC(Mex);

• $150 million senior notes due 2016 to C/RR4 from CCC/RR4;

• $300 million senior notes due 2020 to C/RR4 from CCC/RR4;

• $500 million senior notes due 2022 to C/RR4 from CCC/RR4; and

• Ps. 600 million in certificados bursatiles due in 2014 to C(mex) from CCC(mex).

Urbi's national short-term rating was affirmed at C(mex).

Fitch said the downgrades follow Urbi's announcement that it did not make April 19 the interest payment due on its senior notes due 2016. The notes contain a 30-day grace period.

As a result of the company's actions, a default or a distressed debt exchange is highly likely, which would likely impose a material reduction of principal and/or interest vis-a-vis the original contractual terms of the company's capital markets debt, the agency said.

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