Approximately BRL 250 million of certificates affected
Sao Paulo, November 22, 2012 -- Moody's América Latina (Moody's) has placed on review for possible downgrade the Ba2 (global scale, local currency) and Aa3.br (Brazilian national scale) ratings of the 1st issuance of the 15th series of real estate certificates (CRIs) issued by PDG Companhia Securitizadora.
Issuer: PDG Companhia Securitizadora
15th Series / 1st Issuance of Certificates: Aa3.br national scale rating placed under review for possible downgrade; the last rating action occurred on Jun 6, 2012, when the Aa3.br was assigned. Ba2 global scale, local currency rating placed under review for possible downgrade; the last rating action occurred on Jun 6, 2012, when the Ba2 definitive rating was assigned.
Today's announcement follows the review for downgrade of PDG Realty's published on November 19, 2012. The corporate family ratings and the ratings of the CCB (cédula de crédito bancário) that backs the 15th series of CRIs, both at Ba2 / Aa3.br, were placed on review for downgrade. For details, please refer to the announcement titled "Moody's places PDG's ratings under review for downgrade".
Moody's views the certificates as being full pass-through securities of obligations and guarantees of the underlying CCB. Given that the ratings of the 15th series of certificates are primarily based on PDG Realty's ability to make payments under the bank loan agreement (CCB), any changes to the CCB ratings will lead to a change in the ratings assigned to the certificates.
Moody's will conclude this review for possible downgrade following the conclusion of the review of PDG Realty's ratings.
Headquartered in Rio de Janeiro, PDG Realty is one of largest homebuilders in Brazil operating through its wholly owned subsidiaries, Goldfarb, CHL, Agre and minority investments in other companies. The company's portfolio of products is diverse including projects in several Brazilian states. During the last 12 month ended September 2012, PDG generated net revenues of BRL5.8 billion.
PDG Realty holds a near 100% stake in PDG Companhia Securitizadora, a fully controlled subsidiary incorporated in 2009.
The principal methodology used in rating the certificates was Global Homebuilding Industry rating methodology published in March 2009. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.
Moody's National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".mx" for Mexico. For further information on Moody's approach to national scale ratings, please refer to Moody's Rating Methodology published in October 2012 entitled "Mapping Moody's National Scale Ratings to Global Scale Ratings".
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