Fitch Sees Brazil Homebuilder Consolidation

More consolidation is expected in Brazil’s home building sector, says Daniel Kastholm, Fitch’s managing director and head of LatAm corporates. Kastholm explains that highly leveraged Brazilian homebuilders in need of liquidity will be likely targets. Buyers, on the other hand, could be those companies that destocked in response to the crisis to meet demand levels. Kastholm says that credit is still available for potential acquirers. He adds that companies, which had been focusing more on mid and upper-sector housing may start focusing more on lower-income segments. He was speaking Tuesday at an EM panel in New York hosted by Fitch.