Shares in Mexican builder ICA reverse losses after suspension

Shares in ICA rose sharply in Thursday morning trading, reversing earlier losses a day after ratings agencies downgraded the embattled Mexican construction firm, flagging a high probability of default.

ICA rose 5.28 percent in volatile trading to 3.39 pesos after falling nearly 10 percent at market open, prompting the bourse to briefly suspend trading in its shares. The stock exchange then auctioned shares in ICA, helping the price to rebound.

ICA, which has been slammed by a sharp fall in the peso and slow government infrastructure spending, said on Monday it would take a 30-day grace period on some bonds after failing to pay a US$31 million coupon.

On Wednesday, both Moody's and Standard and Poor's ratings agencies downgraded ICA's debt rating further down the junk category, citing a high probability that the company won't make the payment within the 30 day grace period.