Moody's downgrades CIE

Moody's Investors Service said it downgraded Corporacion Interamericana de Entretenimiento, SAB de CV's (CIE) corporate family rating to Ba3 from Ba2, $186 million senior unsecured notes due 2015 to Ba3 from Ba2, Ps. 1.4 billion certificados bursatiles due 2010 to A3.mx from A2.mx and Ps. 500 million in certificados bursatiles due 2009 to A3.mx from A2.mx.

The outlook was changed to stable from negative.

The downgrades were based on increased uncertainty about CIE's future operating results due to increased taxes in the Mexican gaming sector and the possible impact on Mexican consumer disposable income of the U.S. economic slowdown, the agency said.

CIE's Ba3 rating reflects its dominant market share position in the out-of-home entertainment sector in Mexico as well as the company's EBITDA margin, the agency said.

The ratings are constrained by uncertainty about future operating results as well as by the company's relatively aggressive liquidity policy, Moody's said.

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