NEW YORK - (Business Wire) Fitch Ratings views Servicios Corporativos Javer, S.A.P.I de C.V.'s (Javer) recent announcement that its controlling shareholder has signed an agreement to sell a controlling interest in Javer to Southern Cross Group (Southern Cross) and Evercore Mexico Capital Partners (Evercore) as neutral to Javer's credit quality. The transaction is not expected to materially change Javer's capital structure and liquidity position over the near term as a result of the change in ownership. The new controlling group is not expected to implement any fundamental changes in Javer's overall business or financial strategy, with respect to leverage and dividend policies as the intention is to re-invest free cash flow into the business as it becomes available to help maximize growth. Further, the transaction is not expected to result in any change of cash.
The incorporation of the new strategic partners, which have a proven track record in operating companies throughout the region, along with the continued management by Javer's founder Salomon Marcuschamer and other key executives is a positive in terms adding operating and management expertise to the company while maintaining business continuity. Over the long term, any material changes in business strategy could affect credit quality. The transaction is subject to consent from existing bondholders, and will require approval from Mexican regulatory authorities (the Comision Federal de Competencia and the Foreign Investment National Commission).
Javer's ratings reflect the company's solid market position in the state of Nuevo Leon; its geographic and product diversification; its significant land reserve and its good financial profile. Javer is a leading homebuilder in northeastern Mexico, particularly in the state of Nuevo Leon. Through a targeted expansion strategy, Javer continues to expand its presence and play an increasingly important role in developing homes in states such as Aguascalientes, Jalisco and Tamaulipas. The company primarily serves the affordable entry level housing segment (lower income), middle income segment, and to a lesser extent, the residential home segment (upper income). During the first nine months of 2009 it generated MXP$3,441 million of revenues and registered sales of 11,455 units, representing increases of 30.6% and 38.3%, respectively, versus prior year's same period.
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Fitch Ratings
Jose Vertiz, +1-212-908-0641 (New York)
Bernardo Gonzalez, +52-81-8399-9100 (Monterrey, Mexico)
Brian Bertsch, +1-212-908-0549 (Media Relations, New York)
brian.bertsch@fitchratings.com
Cindy Stoller, +1-212-908-0526 (Media Relations, New York)
cindy.stoller@fitchratings.com
