Moody’s Lowers Urbi

Moody’s has downgraded Urbi to Caa2 from B2, it says, due to a missed interest payment on its 2016 bond. A default will cause a payment acceleration of Urbi’s bonds, placing a large burden on the company’s liquidity position and viability, the agency says. “Urbi has limited liquidity and its cash flows continued to be stressed, which likely implies difficulty in being able to quickly develop and sell homes,” it says. Moody’s expects Urbi to continue to experience deterioration in its operating profits and credit metrics. The rating remains under review for downgrade. The move follows a similar downgrade from Fitch Monday.