PDG Realty National Scale Ratings Cut To 'brA-' From 'brA', Global Scale 'BB-' Rating Affirmed; Outlook Negative Dec 12
- Language: English
- Published: December 2012
- Region: Global
Standard & Poor's Ratings Services' ratings on PDG Realty S.A. Empreendimentos E Participacoes (PDG) incorporate the risks associated with the company's exposure to the highly competitive, cyclical, and fragmented Brazilian homebuilding sector, which depends on economic conditions, and the risks of credit availability to home buyers and homebuilders. The long production cycle in the homebuilding sector, which demands high levels of working capital, and its aggressive growth strategy, which is based on acquisitions and housing starts, also temper the ratings. The company's diversification-- both in terms of geography and income segment, its adequate liquidity, and its sizable landbank, which reduces the pressure for land acquisitions, partially offset these risks. PDG's business profile is fair. The fundamentals of the homebuilding industry...
Companies mentioned in this report are: PDG Realty S.A. Empreendimentos E Participacoes
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.
SHOW LESS READ MORE >
PDG Realty S.A. Empreendimentos E Participacoes