Fitch upgrades Even

Fitch Ratings said it upgraded the ratings of Even Construtora e Incorporadora SA's long-term national scale to A(bra) from A-(bra), long-term foreign-currency issuer default rating to BB- from B+, long-term local-currency issuer default rating to BB- from B+, R$100 million second debenture issuance due 2012 to A(bra) from A-(bra), R$75 million third debenture issuance due 2013 to A(bra) from A-(bra) and R$250 million fifth debenture issuance due 2016 to A(bra) from A-(bra).

The outlook is stable.

The upgrades reflect Even's consistent operational results and conservatively managed liquidity position, which has allowed it to grow with limited risk, Fitch said.

Further factored into the rating upgrades are the company's low leverage and manageable debt amortization schedule, the agency said.

The ratings are constrained by an expectation that cash flow from operations should remain negative due to rapid growth and land bank acquisitions, Fitch said, as well as a high level of competition among homebuilders.

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