ICA Tumbles as BofA Lowers Rating to Neutral: Mexico City Mover

Empresas ICA SAB (ICA*), Mexico’s biggest construction company, dropped the most on the country’s benchmark index as Bank of America Corp. cut its rating to neutral on concern the builder faces higher taxes.

The shares declined 4.3 percent to 26.88 pesos at 12:39 p.m. in Mexico City, the most on a closing basis since July 8. The benchmark IPC slipped 0.6 percent.

Legislation that Mexico’s lower House passed last week will probably boost ICA’s future cash taxes, Bank of America analysts Carlos Peyrelongue, Daniel Rojas Vielman and Alan Macias wrote today in an e-mail to clients.

The analysts cut their rating on ICA shares from buy. The company may face a new liability of 4.6 billion pesos ($355 million) based on “the expected reduction in deferred taxes related to tax payables from fiscal deconsolidation,” they wrote.

To contact the reporter on this story: Ben Bain in Mexico City at bbain2@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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