Fitch Chops Javer to B Minus

Fitch has chopped the ratings of Mexico-based homebuilder Javer to B from B minus. The outlook is stable. The downgrade reflects Javer’s increased leverage as a result of lower cashflow generation, measured by Ebitda, as well as the view that the company’s strategy to resume growth during 2011 will limit its capacity to generate positive free cash flow. Javer’s revenue and Ebitda levels for the first 9 months of 2010 were MXP2.57bn and MXP408m, respectively. These figures represent declines of 25.2% and 39.9% below those achieved by the company during 2009’s same period.