Urbi Desarrollos Urbanos SA de CV : Fitch adjusts URBI's credit rating

 The company considers that the adjustment is related with the recent Rating Watch issued by the rating agency to the industry due to its understanding about the new National Housing Policy.

 The current rating does not reflect Urbi's progress on its operating consolidation process, its updated business plan for 2013 with FCFE generation and the recent improvements to its debt profile.

 The company confirms that the adjustment does not affect its financial commitments and agreements.

'CCC(mex)' its long-term rating and from 'F3(mex)' to 'C(mex)' its short-term rating, both at a National scale.
The company considers that the rating adjustment to Urbi's debt is an event related to the Rating Watch recently issued to the housing industry due to its interpretation of the impact of the new National Housing Policy on the home developers' cash flow generation. The company considers that these adjustments reflect an overreaction to external industry factors, due to the extent and promptness of the correction.
The adjustment of the company's rating does not acknowledge Urbi's important progress in its operating consolidation process initiated on July 2012; which will allow it to start its cash flow generation from 2013, and the strengthening of the credit profile with its main banks that has been transformed in project finance with maturities of up to 5 years. These agreements are already in the implementation process, and increases visibility and certainty on the company's funding for over 60% of the units to be developed over the next
5 years.
To this regard, Selene Avalos, Urbi's CFO, commented: "We are in an accelerated transformation of our operating and financial processes to adapt our business model to the new market conditions; to be converted into a smaller but more solid and flexible company".
In its release Fitch comments that factors such as a challenging regulatory environment and changing demand characteristics for the industry have impacted the company's
performance.

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Urbi Desarrollos Urbanos S.A.B. de C.V. (MSE: URBI*) is a leading company in innovation and sustainable development in the construction of communities in Mexico. Currently, Urbi is present in

39 cities, covering the main metropolitan areas and the most dynamic medium-size cities in the country. In more than 31 years of operations, Urbi has developed over 430,000 homes, and has

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always conducted its business with a strong emphasis on financial performance, making it one of the most profitable companies in the sector.

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This document contains forward-looking statements of the Company, including statements about its financial condition and of the Company's future results of operations, its strategy, plans, objectives and targets, and other data that is not historical information. Such forward-looking statements are based on assumptions, plans, intentions and expectations of the Company's management, and involve risks, uncertainties and other factors, known and unknown, some of which are beyond the control of the Company. Such statements should not be interpreted based on past trends and activities, as if they were to continue in the future. Forward-looking statements contained herein are valid at the date of this document.

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