Mexico homebuilder crisis lurches on with Homex default
Fitch has downgraded Homex from CCC to C as the company became the latest Mexican homebuilder to fail to make a payment on its debt — in this case an interest payment on its 9.5% 2019 bonds. The rating agency believes a distressed debt exchange is “highly likely”.
Homex’s peers Urbi Desarrollos Urbanos (Urbi) and Corporación GEO defaulted in May, as the companies suffer from new president Enrique Peña Nieto’s policy of promoting the building of tower blocks in cities over family homes.
Rating agencies predict recoveries for bondholders of between 30%-50%. But it could be
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