S&P Global Ratings affirmed the global scale issuer credit rating of Servicios Corporativos Javer SAB de CV and revised its outlook on the Mexican homebuilder to stable from negative.
The stable outlook reflects Ratings' expectation that Servicios Corporativos will continue rebalancing its portfolio mix toward higher-income housing units that do not depend on federal subsidies. Ratings expects the company's EBITDA to improve with solid free operating cash flow and limited financing needs, resulting in a debt-to-EBITDA ratio of below 4.0x and EBITDA interest coverage of above 2.0x.
Ratings' affirmation is backed by Servicios Corporativos' plan to refinance senior unsecured notes due April 2021, which will mitigate the company's medium-term debt maturity risk and strengthen its capital structure.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.
