Moody’s Cuts Homex

Homex joined the run of Mexican homebuilders have their ratings cut, with Moody’s lowering it to B2 from Ba3. The agency cites highly constrained liquidity and funding that leave Homex with a diminished capacity to pay and refinance debt maturities, and to grow its business – despite a recent deal to raise $400m from the sale of prison assets to Carlos Slim companies. “Homex’s operating results for 2013 will remain under significant pressure, resulting in continued negative free cash flow,” Moody’s says. The rating is under review for further downgrade.