Brazil Stocks Fall After Fitch Cuts Homebuilders on Slowdown

By Allen Wan

Jan. 22 (Bloomberg) -- Brazilian stocks fell after Fitch Ratings cut the credit ratings of the nation’s biggest homebuilders on concern over the slowing economy.

The Bovespa index slipped 0.4 percent to 38,388.61 at 8:35 a.m. New York time. The index had risen as much as 0.8 percent earlier, spurred by the biggest interest-rate cut in five years. Fitch expects a slowing economy, higher cost of credit, weakening consumer confidence, lower income and higher unemployment rates to hurt the industry. Cyrela Brazil Realty SA Empreendimentos & Participacoes, whose credit rating was cut by Fitch, slid 2.6 percent to 8.55 reais.

To contact the reporter on this story: Allen Wan in New York at awan3@bloomberg.net