S&P: Brascan unaffected

Standard & Poor's said that Brascan Corp.'s (A-/stable/--) sale of its common share stake in Falconbridge Ltd. to Xstrata plc would not affect the rating or outlook on Brascan.

The sale, for approximate proceeds of $1.7 billion, is consistent with Brascan's previously stated objective of reducing its stake in the mining company.

In the near term, this will materially augment Brascan's already strong levels of liquidity but will modestly reduce the diversification of its holdings. S&P said it expects that Brascan will eventually deploy the proceeds in commercial real estate, infrastructure and power, which the company has identified as long-term core investment areas.

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