Fitch Cuts Sare

Fitch has cut its rating for Mexican homebuilder Sare to BBB+ from A minus, noting that operating and financial indicators have weakened in recent quarters. “The rating is limited by the company’s dependence on the availability of financing to sell its homes, as well as the high working capital requirements associated with the company’s normal operations,” the agency states. Sare has postponed new apartment-building projects to focus on low-income homes that have a shorter working capital cycle and are also eligible for government-sponsored mortgages. Fitch also put the rating on watch negative.