Fitch Drops Mirax Credit Ratings

Fitch Ratings agency lowered the national long-term debt rating of real estate developer Mirax to junk bond status, the agency said in a statement.

Fitch lowered the rating to BB-(rus) (BB minus) from BBB-(rus) (BBB minus). It also dropped the firm's long-term issuer default rating to B- from B and reaffirmed the company's other ratings as Rating Watch Negative.

The agency also withdrew all ratings concerning the entity Mirax Group and applied them to Mirax Group Holding, it said.

Last year, the company restructured, transferring all of the assets belonging to Mirax Group to a newly formed parent company, Mirax Group Holding.

In its analysis, Fitch determined that the reorganization had no effect on the company's creditworthiness.

Mirax has $395 million worth of debt that might come due in the first quarter of 2009, including a $180 million loan that is subject to repayment in March if investors use an early redemption option, Fitch said in the statement.