Company Credit Boosted

Fitch has upgraded Company to BB minus (negative outlook) from B+ and its BRL75m in debentures maturing 2012 to A+ from A minus on the local scale. “The upgrade follows the completion of Company’s merger and integration by Brascan Residential Properties,” says Fitch. It placed the ratings of Company and its debentures on positive watch following the announcement of the merger in September. “The negative outlook reflects Fitch’s expectation that homebuilders in Brazil will face a challenging operating environment and financial pressure in 2009 and 2010,” says Fitch. Brookfield Asset Management (BAM) indirectly controls the combined group through intermediate holding companies. BAM is an international manager of assets amounting to around $90bn, including $38bn of real estate assets. Fitch rates BAM BBB+ with a stable outlook.