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Fitch Ratings affirms Servicios Corporativos Javer, S.A.B. de C.V.'s IDRs at 'B+'.

Monterrey: Fitch Ratings, a nationally recognized statistical rating organization (NRSRO) designated by the U.S. Securities and Exchange Commission, affirmed Servicios Corporativos Javer, S.A.B. de C.V.'s (Javer) Long-Term Local and Foreign Currency Issuer Default Ratings (IDRs) at 'B+' with a Stable Rating Outlook.

Fitch expects to resolve the Rating Watch within the next six months upon completion of the exposure draft period. If the final criteria are substantially similar to the Exposure Draft, then the company's issuance ratings are likely to be impacted after the final criteria report is published.

It maintains the Rating Watch Negative on the company's 'BB-/RR3' rating for the outstanding USD159 million senior notes due 2021. The Rating Watch Negative reflects the publication of Fitch's "Exposure Draft: Country-Specific Treatment of Recovery Ratings" on Feb. 14, 2018, where the agency explains the application of caps to instrument ratings for a given jurisdiction. These caps usually limit the assignment of higher Recovery Ratings (RRs) for obligations of issuers that are incorporated, or whose assets and/or cash flows are located, in less creditor-friendly jurisdictions.

Javer is the leading homebuilding company in Mexico based on the number of units sold through the Infonavit system. During 2017, the company sold 18,750 units, out of which 17,343 were through Infonavit mortgages to final clients. The company holds a leading position in its main markets (states of Nuevo Leon and Jalisco). Javer has presence in some of the states with the highest income per capita (Nuevo Leon, Jalisco and Queretaro) and positive economic and population growth trends (Queretaro and Estado de Mexico) that have a positive relation with the number of available mortgages through the Infonavit system. As of Dec. 31, 2017 Javer remains the leader of new homes sold through the Infonavit system with 8.9% units sold.

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Publication:Daily the Pak Banker (Lahore, Pakistan)
Geographic Code:1MEX
Date:May 20, 2018
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