Fitch drops Brookfield

Fitch Ratings said it downgraded Brookfield Incorporacoes SA and Brookfield Sao Paulo Empreendimentos Imobiliarios SA ratings and related issuances as follows:

• Brookfield Incorporacoes' long-term foreign currency issuer default rating to BB- from BB; long-term local currency issuer default rating to BB-, from BB; long-term national-scale rating to A+(bra)from AA-(bra); 100 million reais first debenture issuance due 2013 to A+(bra) from AA-(bra);

• 366 million reais second debenture issuance; first series of 285 million reais due in 2014 and second series of 81 million reais due in 2016,to A+(bra) from AA-(bra); 300 million reais third debenture issuance; first series of 150 million reais due in 2015 and second series of BRL150 million due in 2016, to A+(bra) from AA-bra); and BRL300 million fourth debenture issuance due 2016 to A+(bra) from AA-(bra); and

• Brookfield Sao Paulo's long-term foreign currency issuer default rating to BB- from BB; long-term local currency issuer default rating to BB- from BB; and long-term national-scale rating to A+(bra) from AA-(bra).

The outlook is stable.

The rating downgrades reflect Fitch's expectations of a significant weakening of Brookfield Incorporacoes' credit metrics in 2012 and well above Fitch's initial expectations of more stable leverage, the agency said.

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