Geo Coupon Miss Raises $700m Acceleration Fears

Ratings agencies have cut Corporacion Geo’s debt rating after the company missed a $2.3m coupon due on Friday on a $400m local bond. Moody’s expects Geo will not pay the coupon in the five day grace period, and that the non-payment will trigger default and accelerate $700m worth of unsecured debt, it says. Moody’s cut Geo’s rating to Ca, from Ca1. Fitch expects bondholders to recover 30% to 50% if the Mexican homebuilder defaults on the note. It cut Geo’s rating to C, from CCC. The Mexican homebuilder appointed Fians Capital and a group of advisors earlier this month to help it consider its restructuring options.