Fitch lowers Visocan

Fitch Ratings said it downgraded Viviendas Sociales e Infraestructuras de Canarias SA's (Visocan) long-term foreign- and local-currency issuer default ratings to BB from BB+.

The outlook is stable.

The ratings were then withdrawn.

The downgrades reflect the reassessment of the strategic importance of Visocan to the Autonomous Community of the Canary Islands, Fitch said.

The difference between social- and free-market rent has narrowed significantly in the region, given the sharp decline in economic activities and large stock of unsold housing, the agency said.

There also has been a sharp reduction in the sale of social-housing homes with only three properties sold in 2013 compared with 69 in 2012 and 105 in 2011, Fitch said.

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