Moody's rates Inpar notes B1

Moody's Investors Service said it assigned a B1 local-currency rating and Baa2.br Brazilian national scale rating to Inpar SA's proposed R$300 million senior secured five-year debentures, and affirmed its B1 corporate family rating and Baa2.br national scale rating.

The outlook is stable.

The ratings reflect its strong brand name in the homebuilding industry, where the company is one of the market leaders in the southeast region of Brazil, Moody's said, as well as the ownership by Paladin Prime Residential Investors (Brazil), LLC, a company with long experience in real estate in many emerging markets.

The ratings also reflect the strengthened capital structure following the issuance of R$180 million in new equity in 2009 and an additional R$280 million in 2010, along with its proven good liquidity in the company's assets, the agency said.

The ratings are constrained by the company's relatively small size when compared to its international peers and certain local competitors, Moody's said, and its poor financial strategy track record under the previous controlling group.

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