Fitch affirms Brookfield

Fitch Ratings said it affirmed the issuer default ratings and outstanding debt ratings of Brookfield Incorporacoes SA's long-term foreign-currency issuer default rating at BB-, long-term local-currency issuer default rating at BB-, long-term national scale rating at A+(bra), $R100 million first debenture issuance due September 2013 at A+(bra), R$366 million second debenture issuance (first series of R$284.66 million due 2014 and second series of R$81.4 million due 2016 at A+(bra).

The agency also affirmed Brookfield Sao Paulo Empreendimentos Imobiliarios SA's long-term foreign-currency issuer default rating at BB-, long-term local-currency issuer default rating at BB-, long-term national scale rating at A+(bra) and R$75 million third debenture issuance due Jun 2012 at A+(bra).

The outlook is stable.

The ratings reflect Brookfield's increasing scale of operations, which have been carried out through strategic acquisitions in 2008, Fitch said.

The ratings also consider the company's good liquidity, strengthened by the receivables from concluded units not linked to debt, Fitch said, operating margins and sales speed in line with the average for the sector and its adequate debt profile.

The ratings are constrained by the moderate leverage and still negative cash flow from operations, the agency added.

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