MRV Gets Fitch Upgrade

Fitch has upgraded the local ratings of Brazilian homebuilder MRV Engenharia’s ratings to AA minus (bra) from A (bra). Fitch cites the company’s ability to maintain solid credit metrics following challenging macroeconomic conditions in 2009, a conservative financial strategy of having a strong liquidity position to support its business growth, and low leverage. Also factored into the rating is the strength of MRV’s business and the company’s efficiency in maintaining sustainable growth with high margins at its projects. As of June 30, cash and marketable securities amounted to BRL982m and total debt was BRL1.4bn. Leverage, measured by total debt/Ebitda, was 2.3x in the last 12 months ended June, while net debt/Ebitda ratio was 0.7x compared to 1.6x and 1.1x, respectively, in 2008.