OREANDA-NEWS. A perfect storm scenario is approaching for Brazilian homebuilders, according to a new report by Fitch Ratings. The sector faces rising unemployment and interest rates, deteriorating consumer confidence, a squeeze in credit lines for homebuyers, and higher saving account withdrawals.

Within this scenario, a robust liquidity position is a key factor to help offset the operating cash flow volatilities. Fitch expects downgrades to outpace affirmations during 2015. At the end of September 2015, 40% of Fitch-rated companies in the sector had a Negative Outlook/Rating Watch.

Fitch's 'Brazilian Homebuilding Stats' report for the first-half of 2015 provides a summary of the sector's risk and operating performance as well as credit metrics for 11 companies in Fitch's portfolio. It includes company-specific key credit strengths and concerns and a summary of the companies' liquidity positions, including debt maturities, as of June 30, 2015.

The report is available on the Fitch web site at 'www.fitchratings.com'.