Fitch Ratings has launched a series of five reports covering corporate credit trends in Latin America with an Outlook Report for Brazil.
One report is being released each day through Friday.
"Brazilian corporates remain on the ropes. Approximately one of every four has a negative rating bias," Fitch Senior Director
Ricardo Carvalho said.
Corporate debt levels are projected to level off during 2015. Management teams have slashed capital expenditures and reduced merger and acquisition activity in response to the dire economic situation. The median cash flow burn was only 1 percent of revenues during 2014.
Weak operating cash flows, however, will result in growth of leverage metrics.
Fitch projects that corporate operating cash flows will decline for the fifth consecutive year as high inflation, increasing interest rates and rising unemployment stifle consumer sentiment and economic activity.
The five reports and release dates are as follows:
- Monday: Brazil Corporate Outlook Update - Dark days to continue;
- Tuesday: Chile Corporate Outlook Update - Challenges persist;
- Wednesday: Colombia Corporate Outlook Update - Resilient credit quality;
- Thursday: Mexico Corporate Outlook Update - Slow but steady;
- Friday: Peru Corporate Outlook Update - Facing hard times.
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