S&P rates PDG Realty BB-

Standard & Poor's said it assigned BB- ratings to PDG Realty SA Empreendimentos e Participacoes. The company is rated brA on the Brazil national scale.

The outlook on the corporate credit ratings is stable.

"The ratings on PDG incorporate the risks associated with the company's exposure to the highly competitive, cyclical and fragmented Brazilian homebuilding sector, which is highly dependent on domestic economic performance," S&P analyst Marcelo Scwartz said in a statement.

Ratings are also tempered by the long production cycle in the homebuilding sector, which demands high levels of working capital, and the challenges faced by PDG to integrate AGRE Empreendimentos Imobiliarios SA, the agency said.

These risks are partially offset by the company's diversification in terms of geography and income segment, especially after the acquisition of AGRE, its margins that compare well with its peers, its proven record in the homebuilding segment through its subsidiary Goldfarb and its sizable landbank, the agency noted.

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