Fitch puts BR Properties on watch

Fitch Ratings said it placed BR Properties SA's BB- long-term local- and foreign-currency issuer default ratings, its A(bra) long-term national scale rating and the BB- rating assigned to its $285 million senior perpetual notes on rating watch negative.

The negative watch follows the announcement that BR Properties signed an agreement to acquire the condominium Centenario Plaza for R$433.4 million and reflects the expected negative impact on the company's high leverage ratios and liquidity. The agency expects pro forma net leverage to increase to about 8.7x with the acquisition and to remain high for a longer period than Fitch's initial expectations of a gradual reduction.

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