Moody's downgrades Brookfield Incorporacoes

Moody's Amarica Latina said it downgraded the corporate family ratings assigned to Brookfield Incorporacoes SA to B1 from Ba3 on the global scale and to Baa2.br from A3.br on the Brazilian national scale.

At the same time, the agency downgraded the ratings assigned to the company's fourth senior unsecured debentures issuance in the amount of R$300 million issued by Brookfield in August 2011 to B1/Baa2.br from Ba3/A3.br.

All ratings remain under review for downgrade.

Moody's said the downgrade in Brookfield's ratings was prompted by the release of much weaker than anticipated 2013 results, mainly as a consequence of financial restatements related to additional cost overruns, land bank impairments and provisions for future losses due to construction delays.

The results were also pressured by softer than expected operating performance, leading to higher leverage and overall weak credit metrics, the agency said.

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